SpaceX issues a bond with a stated interest rate of 9%, face value of $185,000, and due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond? (Round final answer to whole dollars) Use the effective interest rate method Record the bond issue. Record the first interest payment on June 30, 2021. Date Account Name Debit Credit 1/1/21 6/30/23
SpaceX issues a bond with a stated interest rate of 9%, face value of $185,000, and due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond? (Round final answer to whole dollars) Use the effective interest rate method Record the bond issue. Record the first interest payment on June 30, 2021. Date Account Name Debit Credit 1/1/21 6/30/23
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SpaceX issues a bond with a stated interest rate of 9%, face value of $185,000, and due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond? (Round final answer to whole dollars)
Use the effective interest rate method
- Record the bond issue.
- Record the first interest payment on June 30, 2021.
Date | Account Name | Debit | Credit |
1/1/21 | |||
6/30/23 | |||
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