Chapter 14, Problem 8BTN

To determine

Introduction:

Bond: A bond is defined as a security generally used for a debt investment under which an investor finances money to an entity for a definite period of time at a fixed interest rate. Ventures that demands huge amount of funds are usually financed from bond issuance. The total amount of interest payable on bond issuance during a given period of time is known as bond interest expenses.

To calculate:

1. The amount of long term bonds and notes currently outstanding.

2. The supporting information to municipality’s financial statements and records

a. The market interest rate when the bonds and notes were issued

b. The date when bonds or notes will mature.

c. Any rating on the bonds and notes received from Moody’s investor’s service, Standard and Poor rating service, Fitch ratings and any other rating agency.