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Lance Brothers Enterprises acquired $770,000 of 2% bonds, dated July 1, on July 1, 2011, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Lance Brothers paid $670,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M962088

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