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QUESTION
2 period bond. CR = 10%. FV = 1,000 (1) at par, r=10%: DR Cash 1000; CR bond payable 1000 (2) at premium, r=8%:
Need help explaining how my professor got the number for the premium on bond:
2 period bond. CR = 10%. FV = 1,000
(1) at par, r=10%: DR Cash 1000; CR bond payable 1000
(2) at premium, r=8%: DR Cash 1,036; CR bond payable 1000, CR premium on bond 36
