Chantilly Company issued $25 million of bonds with a life of 10 years. The stated...
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Accounting
Chantilly Company issued $25 million of bonds with a life of 10 years. The stated rate of interest was 8% and the market rate was 7%. Interest is paid semi annually. Which of the following statements is correct?
Group of answer choices
The interest expense is $175,000 through the life of the Bonds
The book value of the bond will increase as the bond matures.
The first interest payment is $1,000,000
The bonds were issued at a discount.
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