Orion Ridge Corporation issues bonds with a par value of $800,000 on their stated issue date. The bonds mature in 5 years and pay 5% annual interest in semi-annual payments. On the issue date, the annual market interest rate is 7%, but for this question, focus only on the semi-annual interest payment. What is the amount of each semi-annual interest payment for these bonds?

Orion Ridge Corporation issues bonds with a par value of $800,000 on their stated issue date. The bonds mature in 5 years and pay 5% annual interest in semi-annual payments. On the issue date, the annual market interest rate is 7%, but for this question, focus only on the semi-annual interest payment. What is the amount of each semi-annual interest payment for these bonds?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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