accounting-Beaufort Company issued $400,000 face value bonds,
QUESTION
Beaufort Company issued $400,000 face value bonds, 10%, 2 year bonds that pay interest semiannually. The effective (market) interest rate is 8%.Required:Compute the selling price of the bond. Indicate if the bonds sold at a premium or discount. Explain why the bonds were issued at a premium or discount.
ANSWER:
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