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14-12-2022
Business

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on january 1, year 1, young company issued bonds with a face value of $129,000, a stated rate of interest of 13 percent, and a 10-year term to maturity. interest is payable in cash on december 31 of each year. the effective rate of interest was 12 percent at the time the bonds were issued. the bonds sold for $136,289. young used the effective interest rate method to amortize the bond premium.

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