Question
In July 1 1988, A Group issues $1,000,000 of ten-year, 8% bonds to yield 9. The bonds pay interest semi-annually on December 31. The bond
In July 1 1988, A Group issues $1,000,000 of ten-year, 8% bonds to yield 9. The bonds pay interest semi-annually on December 31. The bond proceeds were $960,436. The bond interest payment for 1988 is 40000. Can you please explain? It should be 1M * 0.08 divided by 6 due to semi-annually correct?
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Financial Accounting
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
6th Edition
1618533118, 978-1618533111
