Debond Corp. (a hypothetical company) issues 1,000,000 worth of five-year bonds, dated 1 January 2010, when the

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Debond Corp. (a hypothetical company) issues £1,000,000 worth of five-year bonds, dated 1 January 2010, when the market interest rate on bonds of comparable risk and terms is 5 percent per annum. The bonds pay 5 percent interest annually on 31 December. What are the sales proceeds of the bonds when issued, and how is the issuance reflected in the financial statements?

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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