On December 31, 2017, what has happened to the market rate of interest since the date the bond was originally issued? a. The market rate has increased over time. b. The market rate has decreased over time. c. Can’t be determined Part C. The following bond information was disclosed by Delta Airlines in the footnotes to the 10K.(in millions)Total debt at par valueUnamortized discount and debt issuance cost, netNet carrying amountFair value2017$8,539(99)$8,440$8,7002016$7,112(104)$7,008$7,300

c. Can't be determinedExplanation:It is impossible to say whether the market rate of interest has…

Part C. The following bond information was disclosed by Delta Airlines in the footnotes to the 10K. (in millions) Total debt at par value Unamortized discount and debt issuance cost, net Net carrying amount Fair value 2017 $8,539 (99) $8,440 $8,700 2016 $7,112 (104) $7,008 $7,300

Part C. The following bond information was disclosed by Delta Airlines in the footnotes to the 10K. (in millions) Total debt at par value Unamortized discount and debt issuance cost, net Net carrying amount Fair value 2017 $8,539 (99) $8,440 $8,700 2016 $7,112 (104) $7,008 $7,300

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On December 31, 2017, what has happened to the market rate of interest since the date the bond was originally issued? a. The market rate has increased over time. b. The market rate has decreased over time. c. Can’t be determined

Part C. The following bond information was disclosed by Delta Airlines in the footnotes to the 10K.
(in millions)
Total debt at par value
Unamortized discount and debt issuance cost, net
Net carrying amount
Fair value
2017
$8,539
(99)
$8,440
$8,700
2016
$7,112
(104)
$7,008
$7,300

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