Question
Company Ireland Blythe decides to issue bond payable to expand its business in fast growing region of the country. Below are some of the information
Company Ireland Blythe decides to issue bond payable to expand its business in fast growing region of the country. Below are some of the information concerning the bond issue. Par Value per bond $500 Bonds issued 100 Yield to Maturity 7% Coupon 5% Maturity 5 years Coupon payment Annually Required A. Calculate the single bond price [Bo] at issue B. Make an amortization schedule for the single bond C. Journalize the issue of all the bonds issued D. Journalize the first bond expense of this issuer [ must calculate the total expense] E. Journalize the first bond expense if the company decides to pay interest semi-annually F. Journalize the bond when the issue matures after 5 years. PART B Par Value = $1000 Coupon = 8% Bo = $1080 Maturity = 6 years Required G. Calculate the yield to maturity [YTM] of the bond
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