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Famco issued a 5%, 5 year, $500,000 serial bond on January 1, 2017. There are actually 5, $100,000 bonds, with one bond due each December
Famco issued a 5%, 5 year, $500,000 serial bond on January 1, 2017. There are actually 5, $100,000 bonds, with one bond due each December 31, 2017. Interest is also paid annually on each December 31. The bonds were sold at 98. Issue costs were $1000. Calculate the effective interest rate and record the December 31, 2017 payment of principle and interest.
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