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Question: On 1/1/16, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors, when the market rate of interest was? 10%. In exchange for the note, Diamond agrees to make semi-annual interest payment and repay the full $500,000 at maturity. How much cash will Diamond receive in exchange for this note?

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Accounting Basics, Accounting

Category:- Accounting Basics
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