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    studioussyd's Avatar
    studioussyd Posts: 1, Reputation: 1
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    #1

    Jun 9, 2010, 10:56 AM
    Red & Blue Company sold bonds at 97 on an interest payment date for $500,000. Assumin
    Red & Blue Cross sold bonds at 97 on an interest payment date for $500,000. Assuming the bonds will be retired in 10 years and interest is paid annually. The bonds carry a stated interest rate of 5 percent.
    1). Calculate the amount of cash that will be received and paid by Ted and Blue in the first year.
    2). Calculate the interest expense that will be recognized in that year.
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Jun 9, 2010, 10:58 AM
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html
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