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2 5 pts Section 1 - Q2 [Section 1 general information stays the same. It is repeated for your information.] The Ginsberg Co. issued 10-year
2 5 pts Section 1 - Q2 [Section 1 general information stays the same. It is repeated for your information.] The Ginsberg Co. issued 10-year bonds on April 30, YR 1. The debt has a face value of $1,000,000 and an annual stated interest rate of 8%. Interest payments are due semiannually beginning October 31, YR 1. The market interest rate on the bonds is 10%. Ginsberg amortizes any discount or premium using the effective interest method and has a fiscal year-end of December 31. In addition, Ginsberg incurs $30,000 of bond issue costs related to this bond issue. Ginsberg uses a straight line to recognize bond issue costs at the end of each year. What is the carrying value of the bond on Oct. 31, YR2? Round UP to the whole dollar (no cost). Provide answers to the following questions along with your carrying value on 10/31/YR2. PV(i= %, n= pmt= FV= , 0) = Carrying Value on 10/31/YR2
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