Question
Christmas Anytime issues $840,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the
Christmas Anytime issues $840,000 of 6% bonds, due in 20 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:
1a. The market interest rate is 6% and the bonds issue at face amount.
Issue Price=?
Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01 06/30 12/31 1b. The market interest rate is 7% and the bonds issue at a discount.
issue price=?
Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01 06/30 12/31 1c. The market interest rate is 5% and the bonds issue at a premium.
Issue price=?
Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value 01/01 06/30 12/31
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