
a.
Introduction: A bond is known as a fixed income instrument because interest is paid at a fixed rate to bondholders which is also known as Coupon rate. It can be defined as an instrument of indebtedness which is issued by companies to the holders who are called as bond holders. They are part of corporate debt as they are issued by companies and are known as tradable assets.
To find: Whether bonds are sold at discount or premium.
b.
Introduction: Interest expense arises out of a company that finances its capital through debt or leases. It is a cost incurred to a company for its borrowed fund which is fixed in nature.
To find: Whether annual interest payment will be less or more than interest expense.
c.
Introduction: Intra group transactions are the transactions which occur between two companies of the industry, instead of showing separate financial statement for two companies a single consolidated financial statement is prepared which constitute assets, liabilities, expenses, incomes of both companies.
The effect of intercompany bond holding on consolidate net income.

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Chapter 8 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
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