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Business, 11.03.2020 23:16 jonathansheehan26

On September 30, 2012, Sky Company issued 11% bonds with a par value of $500,000 due in 20 years. They were issued at 99 and were callable at 103 at any date after September 30, 2017. Because Sky Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $750,000 at 102; they mature in 20 years. Sky Company uses straight-line amortization. Interest payment dates are March 31 and September 30.

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On September 30, 2012, Sky Company issued 11% bonds with a par value of $500,000 due in 20 years. Th...

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