Fischer s Fishing Gear issued 100 000 worth of 15 year bonds at
Fischer’s Fishing Gear issued $100,000 worth of 15-year bonds at 105. The bonds have a stated rate of 6%.

1. What were the proceeds from the bond issue?
2. Describe the change in carrying value of the bonds over the 15-year life.
3. Will interest expense be larger or smaller than the interest payment each year?

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