BOND PRICING #1 for Debt Financing Company Debt Financing Company (DFC) issues a bond on January 1, 2021 with a face value of $2,000,000. The bond has a 15 year maturity date and requires SEMIANNUAL interest payments. The bond's stated interest rate is 3% and the current market interest rate is 4%. Hint : remember to set your expectations PV tables will be needed. Do not round your PVIF, but round answers to whole dollars. Required : Prepare the journal entry (in proper form) at issuance of this bond for DFC. Include your journal for grading on your PDF upload. Your multiple step calculations must also be shown .... No work = No Credit To get a preliminary idea of how you did you may enter your calculated amount for cash received at issuance
BOND PRICING #1 for Debt Financing Company Debt Financing Company (DFC) issues a bond on January 1, 2021 with a face value of $2,000,000. The bond has a 15 year maturity date and requires SEMIANNUAL interest payments. The bond's stated interest rate is 3% and the current market interest rate is 4%. Hint : remember to set your expectations PV tables will be needed. Do not round your PVIF, but round answers to whole dollars. Required : Prepare the journal entry (in proper form) at issuance of this bond for DFC. Include your journal for grading on your PDF upload. Your multiple step calculations must also be shown .... No work = No Credit To get a preliminary idea of how you did you may enter your calculated amount for cash received at issuance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:BOND PRICING #1 for Debt Financing Company
Debt Financing Company (DFC) issues a bond on January 1, 2021 with a face value of $2,000,000.
The bond has a 15 year maturity date and requires SEMIANNUAL interest payments. The bond's
stated interest rate is 3% and the current market interest rate is 4%.
Hìnt : remember to set your expectations
PV tables will be needed. Do not round your PVIF, but round answers to whole dollars.
Required :
Prepare the journal entry (in proper form) at issuance of this bond for DFC. Include your journal for
grading on your PDF upload.
Your multiple step calculations must also be shown .... No work = No Credit
To get a preliminary idea of how you did you may enter your calculated amount for cash received at
issuance
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