What is the interest expense to be reported

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Question - Bonito Corporation issued P5,000,000 face value, 12%, 10-year bonds on October 1, 2020 at 95. The bonds are dated October 1, 2020 and pay semiannual interest on April 1 and October 1.

Q1: What is the interest expense to be reported for the year 2020?

A bond with face value 100 matures in two years and has just paid a coupon. The bond pays one coupon per year and the coupon rate is 6%.

Q2: If the bond price is 102, what is its yield-to-maturity?

Reference no: EM132922935

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