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On January 1, 2013, Shay issues $270,000 of 9%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2019, Shay retires 30% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount.

4.

value:
4.00 points

Required information

1.

How much does the company receive when it issues the bonds on January 1, 2013?

   

     

 

5.

value:
4.00 points

Required information

2.

What is the amount of the discount on the bonds at January 1, 2013?

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