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Example #3, On January 1, 2016 a company issues 100 bonds, each for $1,000, for par, as the interest rate on the bond (stated/coupon rate)

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Example #3, On January 1, 2016 a company issues 100 bonds, each for $1,000, for par, as the interest rate on the bond (stated/coupon rate) is 4% and the market rate is also 4%. They then used this cash to purchase an automobile for $100,000 cash. The bond is to be paid in at the end of THREE years (December 31, 2018). Debit Credit Date 1/1/2016 Account Name 12/31/2016 Debit Credit Date 12/31/2017 Account Name Debit Credit Date 12/31/2018 Account Name

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