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Calculate the issue price of the bonds

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Reference no: EM132028125

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1. On the same issuance day, one company issued its bonds at a premium while another company issued it at a discount. Does this mean that the company issuing the bonds at a premium has a better bond that investors should buy rather than the bond issued at a discount?

2. A company issued on January 1, 2014 10,000 5 year term bonds of face value $1,000, stated rate of interest 5% to yield 6%; interest is payable semi-annually. Calculate the issue price of the bonds and prepare the journal entry on the issue date.

Reference no: EM132028125

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