Question
1.Calculate the fair value that an investor will pay for the bond described belowRound your answer to the nearest $1,000 and do not use $,
1.Calculate the fair value that an investor will pay for the bond described belowRound your answer to the nearest $1,000 and do not use $, commas or pennies.
Face amount of bond: 2,000,000
Stated interest rate: 3.5%
Term remaining: 20 years
Interest payments semi annual
Market interest rate: 2.8%
2.Will the journal entry to record the purchase of this bond include Discount on Bond Investment or Premium on Bond Investment?
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Franchising An Accounting Auditing And Income Tax Guide
Authors: Ross A. McCallum
2011edition
1460906179, 978-1460906170
