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On April 1, 2018, the company issued $2,000,000, 10% bonds, when the market yield is 9%. Interest is payable annually on January 1, and the
On April 1, 2018, the company issued $2,000,000, 10% bonds, when the market yield is 9%. Interest is payable annually on January 1, and the bonds mature on January 1, 2028. The bonds are convertible. Each $1,000 bond is convertible into 30 shares of common stock.
| Bond principle | ||
| Bond price | ||
| Stated interest rate | ||
| Market yield | ||
| Term in years | ||
| Months before bonds were sold | ||
| Value of conversion (bonds) | ||
| Number of CS can be converted to | ||
Journal Entry at 4/1/18 ??? PV function formula for bond price???
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