About this, why if the bonds were issued at 10% and 11% instead of 98 & 101. Will the solution be i.e. (100-10)=90?

iPad 1:04 PM 15% ) Expert Q&A + Ask new question monthsin 2007 ontract interest! S80,000,000. 10%.412) O ears)*4/12 Post new question Interest expense for 4 months RECENTLY VIEWED Interest payable Interest expense Discount on bonds payable Accounting Question 1.346.667 13.334 To record semianneal bond interest payment interest expensefioe 2 montho( 1/2 of interest months, as computed in peccoeding catry) 2) isssed at 101 Interest expense oe Bonds payable Bond interest payable 13,333 1 SOLUTION Anonymous 6 minutes later From the Journal entries, it is understood that the Bonds worthe $ 80,000,000 are issued a $98 cach which has a par value of S 100 each. Therefore, the difference between the Issue price & Par value is the Discount per bond i.e. S 2 (S100- $98) Total no of Bonds issue = 80,000,000/ 100-800.000 Bonds Therefore, Total Discount = 800,000 * 2 = $ 1,600,000 o Was this answer helptu