Question: A company issues 8 % , two - year bonds dated January 1 of Year 1 with a $ 1 0 0 , 0 0

A company issues 8%, two-year bonds dated January 1 of Year 1 with a $100,000 par value. The bonds pay semiannual interest on June 30 and December 31 and are issued at a price of $96,400. The annual market rate is 10% on the issue date. The following dashboard shows the bond carrying value and its unamortized discount during the bond life.

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