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Business, 19.05.2020 20:09 bm42400

Jane Inc. issued 10% bonds with a face of $880,000,000 for $816,000,000 cash on January 1, 2021, when the effective rate was 12%. Jane pays interest semiannually on June 30 and December 31, records interest at the effective rate, and adjusts the bonds to their fair value on December 31. There was no change in rates during the first 6 months of 2021. On December 31, 2021, the fair value of the bonds was $832,000,000, and $1,000,000 of the increase in fair value was due to a change in the general (risk-free) market rate. Required:1. Record the first interest payment on June 30, 2021. Round your answer to the nearest $.2. Record the second interest payment on December 31, 2021. Round your answer to the nearest $.3. Record the fair value adjustment on December 31, 2021.

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Jane Inc. issued 10% bonds with a face of $880,000,000 for $816,000,000 cash on January 1, 2021, whe...
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