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Duncan brooks needs to borrow 500000 to open new stores how

Question - Duncan Brooks needs to borrow $500,000 to open new stores. Brooks can borrow $500,000 by issuing 5%, 10-year bonds at 96. How much will Brooks actually receive in cash under this arrangement? How much must Brooks pay back at maturity? How will Brooks account for the difference between the cash received on the issue date and the amount paid ack?

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Accounting Basics: Duncan brooks needs to borrow 500000 to open new stores how

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