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Drew Company is a retail company that specializes in selling office supplies to law firms. On January 2, 2003, Drew Company issued $200,000 of 9% ten-year term bonds at an effective annual interest rate (yield) of 10%. The bonds pay interest semiannually on June 30 and December 31. Drew uses the effective interest method of amortization.Calculate the original issue price of the bond showing all your work.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9980706

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