Question
On 1/1/2023 XYZ issued a bond package with a principal of $800,000. Bonds pay interest on 12/31 of each year. Other information about this issue
On 1/1/2023 XYZ issued a bond package with a principal of $800,000. Bonds pay interest on 12/31 of each year. Other information about this issue appears below:
Effective or market rate (RATE) 11% Contractual rate 10% Periods (Nper) 10 Annuity (PMT) $80,000 Ordinary annuity type
1. Indicate the interest expense that will be reported in the Statement of Income and Expenses for the period ending 12/31/2023.
2. Using the data from the previous problem, indicate the amount of interest expense that will be reported on the statement of income and expenses for the period ending 12/31/2023. Show all your computations.
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