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Compute the price of the bonds as of their issue date

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Reference no: EM133027755

Question - Bringham Company issues bonds with a par value of $800,000. The bonds mature in 10 years and pay 6% annual interest in semiannual payments. The annual market rate for the bonds is 8%.

Required -

1. Compute the price of the bonds as of their issue date.

2. Prepare the journal entry to record the bonds' issuance.

Reference no: EM133027755

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