Make your own amortization schedule using the given data. Compute and complete the amortization table Compute and complete the amortization table. On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. The interest is paid annually, and the market interest rate at the date of issue was 11%. What is the issue price of the bond? Prepare the 4 year amortization schedule for the bond. Issue Price: Principal: Interest: Period Interest to be paid=3M x 8% Amortization of Discount =Int exp. Int paid Interest Carrying Balance Expense =carrying amount x 11% 2,720,779. 89 1 240,000.00 2 240,000.00
Make your own amortization schedule using the given data. Compute and complete the amortization table Compute and complete the amortization table. On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. The interest is paid annually, and the market interest rate at the date of issue was 11%. What is the issue price of the bond? Prepare the 4 year amortization schedule for the bond. Issue Price: Principal: Interest: Period Interest to be paid=3M x 8% Amortization of Discount =Int exp. Int paid Interest Carrying Balance Expense =carrying amount x 11% 2,720,779. 89 1 240,000.00 2 240,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Make your own amortization schedule using the given data. Compute and
complete the amortization table
Compute and complete the amortization table.
On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of
8% maturing in 4 years. The interest is paid annually, and the market interest rate
at the date of issue was 11%. What is the issue price of the bond? Prepare the 4
year amortization schedule for the bond.
Issue Price:
Principal:
Interest:
Interest to be
paid=3M x 8%
Period
Interest
Amortization
of Discount
=Int exp. - Int
paid
Carrying
Balance
Expense =carrying
amount x 11%
2,720,779. 89
1
240,000.00
2 240,000.00
Gauth
/math
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