Calculate the sale price of the bond

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Question - Sero Coupon Bond - Company B sold a $100,000, 10 year zero coupon (zero interest paid) bond on January 1, 2010 to yield a 4.5% effective annual effective interest rate.

Calculate the sale price of the bond. Prepare a 10 year amortization schedule. Make any required entries on December 31, 2010 and on Dec. 31, 2011.

Reference no: EM133053168

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