Essay
On January 1,2014,Snuggly Bunny Ltd.issued $3,000,000 of 4%,fifteen-year bonds priced to yield 5%.Interest is payable on June 30 and December 31.Snuggly repurchases the outstanding bonds on July 1,2016,at which time the market rate of interest is 3.5%.Prepare the journal entries for these transactions.
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