Chapter 9: question 3

Required information 3.34 points 3. The market interest rate is 5% and the bonds issue at a premium. F 0 1 VO 1 E AO 1, and PV 1) Use appropriate factor(s) from the tables provided. Do not round interest rate factors. pice Required Information The following information applies to the questions displayed below Date Cash PaidInterest Decrease in 01/01/18 06/30/18 12/31/18 Expense Carrying Value Carrying Value Coney Island Entertainment issues $1,000,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: References eBook & Resources Worksheet Learning Objective: 09-05 Determine the price of a bond issue. Difficulty: 2 Medium Learning Objective: 09-06 Account for the issuance of bonds