Question
On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid
On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid annually each 12/31. The bonds are issued to provide an effective (market) interest rate of6%. Round all amounts to the nearest dollar.
Total interest expense recognized over the entire 8-year term of the bonds is:
$4,000,000. |
$3,353,679. |
$4,620,979. |
Behrend Inc. issued a 10-year, 6% $100,000 note at its face value on October 1, 2014. Interest is paid annually each September 30. The balance sheet at December 31, 2014, will report _________.
| none of the above.
|
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