What is the bond cash interest payment every year

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On January 1, 2014, Bill's Sock Co issued $100,000 worth of bonds. The bonds carry 12% interest due each January 1, and mature on January 1, 2024. The market rate of interest was 13%.

Problem 1: Would the bonds be issued at par, a discount or a premium? Why?

Problem 2: What is the bond's cash interest payment every year?

Problem 3: What is the amount of money that will be repaid in 2024?

Problem 4: Compute the bond's issuance price using the PV of all the bond payment streams, discounted at ____% rate over _______ years.

Problem 5: What are the B/S entries for the bond issuance on Jan 1, 2014?

Reference no: EM132751137

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