Chapter 14, Problem 14.21BE

Bonds Issued between Interest Payment Dates. For each of the following scenarios, compute the accrued interest and cash received when the bond is issued.

Scenario	1	2	3	4
Face value	$850,000	$250,000	$650,000	$350,000
Stated interest rate	5%	3%	5%	6%
Interest payments	Semiannually	Quarterly	Semiannually	Quarterly
Interest payment date	July 1	March 31	January 1	June 30
Issue date	September 30	May 1	May 1	August 31
Bond issue proceeds	$863,200	$197,500	$623,000	$357,000
Accrued interest	_________	________	_________	_______
Cash received	_________	_______	__________	_______