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    sgreen29's Avatar
    sgreen29 Posts: 5, Reputation: 1
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    #1

    Apr 19, 2011, 11:56 AM
    What is the amount of bond interest expense on the first interest payment date?
    Randell Company issues 7%, 10-year bonds with a par value of $150,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 93¼. The straight-line method is used to allocate interest expense.

    What is the amount of bond interest expense recorded on the first interest payment date?
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    smoothy Posts: 25,492, Reputation: 2853
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    Apr 20, 2011, 06:22 PM

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