Assume that on february 1 2005 austin company issues at 109

Reference no: EM13592605

Assume that on February 1, 2005, Austin Company issues, at 109 plus accrued interest, 10-year bonds with a face value of $200,000 and a face interest rate of 8 percent. Interest is paid semiannually on June 30 and December 31. The bond is dated January 1, 2005, and will be due on January 1, 2015. How much accrued interest will there be at the time the bond is issued?

Reference no: EM13592605

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