Chapter 12, Problem 12.5SE

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To calculate: Cash received from issued of bonds.

2.

To determine

To find: The maturity value of the bonds.

 3.

To determine

To calculate: The amount of interest payment for 6 months.