Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. P10-9 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? Note: Round your final answers to nearest whole dollar amount.
Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. P10-9 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? Note: Round your final answers to nearest whole dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13
percent. The bonds mature in five years and pay interest semiannually every June 30 and
December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest
amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1,
FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
P10-9 Part 4
4. What is the book value of the bonds on June 30 and December 31 of this year?
Note: Round your final answers to nearest whole dollar amount.
Bonds payable
June 30
December 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37459920-c404-445c-9bcd-648035962bdd%2F1ce23275-99b2-4dce-9ed8-e70247ff06c1%2Fnzjrhe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13
percent. The bonds mature in five years and pay interest semiannually every June 30 and
December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest
amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1,
FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
P10-9 Part 4
4. What is the book value of the bonds on June 30 and December 31 of this year?
Note: Round your final answers to nearest whole dollar amount.
Bonds payable
June 30
December 31
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