Determine the present value of a five-year, $1,000, 5-percent bond that sold for a yield of 6

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Determine the present value of a five-year, $1,000, 5-percent bond that sold for a yield of 6 percent (the effective interest rate). Interest is paid annually. Prepare a bond amortization schedule. Prepare the entries to record the liability of the bond issued, the interest charges each year, and the payment of the principal.

Value of Bond Beginning Period of Period Period of 12345 Interest Expense Expense Amount Subtracted from

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