Lam Enterprises issued $100,000 face value, 5% coupon, 4-yearbonds on January 1, 2007. The bonds were sold to yield 6% and willpay interest semi-annually.
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a.
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Determine the selling price of the bonds.
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b.
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Prepare an amortization table for the bonds for the first twoperiods.
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c.
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What is the total amount of interest expense on these bondsduring the first year?
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