Question: I can't understand Week 2 a) What factors should be considered in determining the issue price of a debenture. [2 marks] b] 0n 1 July

I can't understand

I can't understand Week 2 a) What factors should be considered in

Week 2 a) What factors should be considered in determining the issue price of a debenture. [2 marks] b] 0n 1 July 2013 Bombo Ltd issues 52 million in six'year debentures that pay interest each six months at a coupon rate of 3 per cent. At the time of issuing the securities, the market requires a rate of return of 6 per cent. Interest expense is determined using the effective-interest method. Required: (i) Determine the issue price of the debenture. [2 marks) (ii) Provide the journal entries at: (6 marks) 11uly 2013, 30 June 2019, B: 30 June 2020

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