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Unformatted text preview: company's bonds to be issued at par, a premium, or a discount (and why!). Following the general explanation, assume the bonds are $100,000 of 5-year bonds, paying interest semiannually. Each team member should perform calculations showing the actual premium or discount, then compare results. How do the premiums and discounts compare to the expected outcomes? Are they a function of the "spread" between the stated rate and effective rate?...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11