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    Mar 10, 2012, 08:25 AM
    Retirements of bonds question?
    On 1 July 2008, reemoni company issued rm 3500000 face value , 8% , 10 years bonds at 3001214. The price resulted in an effective-interest rate 9% on the bonds. Reemoni company uses the effective-interest method tp amortise bond premium or discount. The bonds pay semiannual interest on 1 July and 1 January .

    1)what is the issuance of the bonds on 1 July 2008
    2)the accrual interest and the amortisation of the discount on 1 December 2008
    3)the payment of interest and the amortisation of the discount on 1 July 2009, assuming no accrual interest on 30 June 2009.

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