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Jules issues 4.5%, five-year bonds dated January 1, 2018, with a $230,000 par value. The...

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Accounting

  1. Jules issues 4.5%, five-year bonds dated January 1, 2018, with a $230,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $235,160. The annual market rate is 4% on the issue date. Required: A. Is this bond trading at a discount or premium

B. Explain why the bond in question 4 is trading at a discount/premium (answer should be less than 20 words).

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