bond contract rate=7% semi-anual bond par=$10,000 bond market =6% semi-annual bond life =10 years 1) find the selling price of this bond 2) will it be sold at a discount or premium 3) do the journal entry for the issuance 4) calculate the discount/premium authorization per period (use the sightline method ) 5 )do the entry for the payment of cash interest period 6) do the entry for the amortization of the discount /premium per period 7) find total interest expense per period 8) show the balance sheet presentation of the bond after two periods have elapsed
bond contract rate=7% semi-anual bond par=$10,000 bond market =6% semi-annual bond life =10 years 1) find the selling price of this bond 2) will it be sold at a discount or premium 3) do the journal entry for the issuance 4) calculate the discount/premium authorization per period (use the sightline method ) 5 )do the entry for the payment of cash interest period 6) do the entry for the amortization of the discount /premium per period 7) find total interest expense per period 8) show the balance sheet presentation of the bond after two periods have elapsed
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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bond contract rate=7% semi-anual
bond par=$10,000
bond market =6% semi-annual
bond life =10 years
1) find the selling price of this bond
2) will it be sold at a discount or premium
3) do the
4) calculate the discount/premium authorization per period (use the sightline method )
5 )do the entry for the payment of cash interest period
6) do the entry for the amortization of the discount /premium per period
7) find total interest expense per period
8) show the
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