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Far question I had in exam,I made up the number, the point is that the interest payments start at the date of issuance.
Said the $60,000 bond is issued on 1/1/x1, coupon is 10% payable semiannually on 1/1 and 7/1. The maturity date is 1/1/x3. The market rate is 12%. By calculation, the Issuance price of bond is 57050 in 1/1, What is the carrying amount of bond on 12/31/x1.
Can anyone show me the amortization schedule? How to deal with the first coupon pmt on 1/1. Is it related to amortization of discount? Totally messed up. Thanks a lot!
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