Question
Ari Goldstein issued AED 300,000 of 11%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 10%,
Ari Goldstein issued AED 300,000 of 11%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually. (15 Points) SHOW WORK ON WORKSHEET QUESTION FOR PARTIAL CREDIT. Requirements a. Is the bond a Face Vaue, Premium, or Discount Bond? Place F for face value, P for Premium or D for Discount (2 points) b. How much cash did the company receive upon issuance of the bonds payable? (Round to the nearest dirham) c. What is the total cash paid each interest period? AED (3 points) (2 points) d. What is the total interest paid on 31 December 2018? AED e. What is the total premium amortized on 31 December 2018? f. What is carrying value of the bond on 31 December 2018? g. At maturity what will be total interest paid on the bond? AED (2 points) (2 points) (2 points) (2 points)
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