Question
Gingrich Corporation issued $2,000,000 in bonds on January 1, 2017. The bonds have a coupon rate of 1.5% and pay interest semi-annually on July 1st
Gingrich Corporation issued $2,000,000 in bonds on January 1, 2017. The bonds have a coupon rate of 1.5% and pay interest semi-annually on July 1st and January 1st. The bonds have a 10 year term. The market rate at the issue date is 3.9%. What is the carrying value of the bond on July 1, 2017?
| $1,605,665.44 |
| None of the above |
| $2,000,000 |
| $1,621,975.92 |
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Financial Accounting Theory And Analysis Text And Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
9th Edition
9780470128817
