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1) On 1 July 2014 Brianna Limited issued $2million in five year debentures that pay interest every six months at a coupon rate of 6%.


 

1) On 1 July 2014 Brianna Limited issued $2million in five year debentures that pay interest every six months at a coupon rate of 6%. At the time of issuing the securities the market required a rate of return of 4%. 

Required: 

(a) Determine the issue price 

(b) Provide the journal entries for the debenture for the years ending 30 June 2015 and 2019. 

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