Chapter 14, Problem 10DQ

To determine

Concept Introduction:

Bonds:

Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Issue Price:

The issue price is the amount of money received the borrower from the issue of bonds. The bonds may be issued at a higher or lower price than their face value that means on premium or on discount.

The issue price of the bonds