please provide correct answer of this general accounting question A 5% coupon corporate bond pays interest on January15 and July 15 and is traded for settlement on March20. What is the accrued interest on the $250,000 faceamount of this bond?A. $1,875.00B. $2,152.78C. $2,083.33D. $3,125.00

Step 1: Definition of Accrued InterestAccrued Interest is the interest that has accumulated on a…

Answered: A 5% coupon corporate bond pays…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?
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Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par?
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Evergreen holding issues a bond with a...Please answer the financial accounting question

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A 5% coupon corporate bond pays interest on January 15 and July 15 and is traded for settlement on March 20. What is the accrued interest on the $250,000 face amount of this bond? A. $1,875.00 B. $2,152.78 C. $2,083.33 D. $3,125.00