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Blue Corp. issued bonds on Jan 1, year 20x1. The bonds face value is $100,000 with a coupon rate of 10% and yield 12%. The
Blue Corp. issued bonds on Jan 1, year 20x1. The bonds face value is $100,000 with a coupon rate of 10% and yield 12%. The bonds are dated January 1, year 20x1 will mature in five years. Blue Corp. operates on a calendar year and pays interest once per year on December 31.
Determine:
1. The issue price of the bonds
2. Record the interest expenses at December 31, 20x1
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