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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.

a.

Determine the selling price of the bonds.

b.

Prepare an amortization table for the bonds for the first twoperiods.

c.

What is the total amount of interest expense on these bondsduring the first year?

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