On january 1 year 6 the corporation issued 1000000 face

Reference no: EM13601689

On January 1, Year 6, The Corporation issued $1,000,000 face value, 20-year bonds. The bonds carry coupon interest of 6 percent per year, payable semiannually on June 30 and December 31. The bonds were initially priced on the market to yield 8 percent, compounded semiannually.

The present value of a single amount for 3% 40 periods is .30656
The present value of a single amount for 4% 40 periods is .20829
The present value of an annuity for 3% 40 periods is 23.11477
The present value of an annuity for 4% 40 periods is 19.79277

Required:

a - Compute the issue price of these bonds on January 1, Year 6.

b - Compute the amount of interest expense on these bonds for Year 6 assuming that the firm uses the effective-interest method of amortizing bond premium or discount.

Reference no: EM13601689

Questions Cloud

Golden glove company produces three types of gloves small : golden glove company produces three types of gloves small medium and large. a glove pattern is the first stenciled onto

If the basement is heated by a gas furnace operating at an : the concrete slab of the basement is 11 m long 8 m wide and 0.20 m thick. during the winter temperatures are nominally

What must be the radius of a circular loop of wire so the : question what must be the radius of a circular loop of wire so the magnetic field at its center is 1.40 10-4 t when the

In 2009 mr smith purchased a principal residence for : in 2009 mr. smith purchased a principal residence for 1500000. he made a down payment of 300000 and financed the

On january 1 year 6 the corporation issued 1000000 face : on january 1 year 6 the corporation issued 1000000 face value 20-year bonds. the bonds carry coupon interest of 6

A square coil of wire containing a single turn is placed in : a square coil of wire containing a single turn is placed in a uniform 0.30 t magnetic field as the drawing shows. each

Explain why the component does not accelerate down through : a robot unloads a finished component from a machine and places it on a gravity conveyor. the conveyor accelerates from

Two capacitors are connected in parallel across the : question two capacitors are connected in parallel across the terminals of a battery. one has a capacitance of 2.0

Great falls brewerys regular selling price for a case of : great falls brewerys regular selling price for a case of beer is 15. variable costs are 8 per case and fixed costs

User Account

All Pages