Accounting




Not signed in (Sign In)

Categories



Welcome, Guest

Want to take part in these discussions? If you have an account, sign in now.

If you don't have an account, apply for one now.

Vanilla 1.1.2 is a product of Lussumo. More Information: Documentation, Community Support.

accounting exams









General Accounting Discussions: Bonds

Bottom of Page

1 to 1 of 1

  1.  
    • CommentAuthorJill
    • CommentTimeApr 3rd 2008
     
    Can someone please help me, I am confused!!!

    On January 2, 2008, a company issued $500,000, 10 year bonds for $574,540. The bonds pay interest on June 30 and December 31. The face rate is 8%, and the market rate is 6%.

    A. What is the interest expense on the bonds at June 30, 2008.
    B. What is the annual cash payment ( paid in semiannual payments) on the bonds.
    C. What is the carrying value of he bonds at the end of 10 years.
    D. If the Co. redeems the bonds at a call price of 102 at Dec. 31, 2008, what is the amount of the gain or loss.

1 to 1 of 1

  1.