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Travel Inc had issued ten-year semi-annual bonds of Face value $1,000,000 and coupon rate 10%...

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Accounting

Travel Inc had issued ten-year semi-annual bonds of Face value $1,000,000 and coupon rate 10% at 98.

a. The interest expense recorded over the life of the bond would be $1,000,000

b. The cash interest paid over the life of the bond would be $980,000

c. The interest expense recorded over the life of the bond would be $1,020,000

d. The interest expense recorded over the life of the bond would be $980,000

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