Refer to the issuance of the bonds with bond issue costs in Year 4 for...
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Accounting
Refer to the issuance of the bonds with bond issue costs in Year 4 for HydroQual Inc for guidance. Assume that on January 1, 2023 semi-annual bonds with a face value of $10,000,000 are issued with a coupon rate of 7% when the market rate was 4%. The bonds mature in 5 years and the bond issue costs are $67,000. Calculate the present value, update the effective interest rate, and then prepare the amortization schedule.
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