Question
Coney Island Entertainment issues $1,100,000 of 5% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Calculate
Coney Island Entertainment issues $1,100,000 of 5% 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 schdule when: #1 The market interest rate is 5% and the bonds issue at face amount. ( FV of $1, PV of $1, FVA of $1, and PVA of $1)(use appropriate factor(s) from the table provided. Do not round interest rate factors.)
Issue Price $_______
#2 The market interest rate is 6% and the bonds issue at a discount. (FV of $1, PV of $1 , FVA of $1, and PVA of $1) (use approoriate factors from the tables provided. Do not round interest rate factors.)
Issue Price $_______
#3 The market interest rate is 4% and the bonds issue at a premium. ( FV of $1 , PV of $1, FVA of $1, and PVA of $1) (use appropriate factors from the tables provided. Fo not round interest rate factors.)
Issue Price $______
Date Paid Interest increase in carrying V Cash carrying value Expense 01/01/18 0630/18 12/31/18
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