Question: On December 31 2012 Dave s Delivery Service issued 10 000 worth

On December 31, 2012, Dave’s Delivery Service issued $10,000 worth of 10% bonds at approximately 89. These are 10-year bonds with interest paid semiannually on June 30 and December 31.
1. What are the interest payments for the first two years?
2. Was the market interest rate higher or lower than 10% at the date of issue?
3. Will the interest expense be higher or lower than the interest payment?

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  • CreatedSeptember 01, 2014
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