Question
A firm issues 5 million of 10 year, 6% notes with interest paid semiannually. At issuance the firm received $5,817,565 cash reflecting a 4% yield.
A firm issues 5 million of 10 year, 6% notes with interest paid semiannually. At issuance the firm received $5,817,565 cash reflecting a 4% yield. What is the amount of premium written off against interest expense in the first year the notes are outstanding?
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Financial Reporting And Statement Analysis A Strategic Perspective
Authors: Clyde P. Stickney, Paul Brown
4th Edition
0030238110, 978-0030238116
