Question
On 1/1/21 Big issued $100,000 of 11%, 20 year bonds at 104,000. The bonds are dated 1/1/21, and pay interest each 12/31. 1.Using Excel's IRR
On 1/1/21 Big issued $100,000 of 11%, 20 year bonds at 104,000. The bonds are dated 1/1/21, and pay interest each 12/31.
1.Using Excel's IRR function, what is the effective rate on this bond issue?
2.What is interest expense for 2021?
3.What is interest expense for 2022?
4.What is the remaining "premium on bonds" at the end of 2024?
5.What is the balance in the "premium on bonds" at the beginning of 2029?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
978-0133879872
