Question
On Jan 1, ABC issues a bond with a face value of 1,000, 6% coupon, 3 year term, payble semi-annually each July 1 and Jan
On Jan 1, ABC issues a bond with a face value of 1,000, 6% coupon, 3 year term, payble semi-annually each July 1 and Jan 1. The market requires a 4% return.
What is the net book value of the bond reported on the balance sheet at the end of the third year? (rounded to the nearest dollar)
a. $1,019
b. $1,000
c. $956
d. $1056
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Accounting Information System
Authors: James A. Hall
7th Edition
978-1439078570, 1439078572
