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.
The cash proceeds from issuing the bonds on 1/01/2014 is:
$10,000,000. |
$9,379,021. |
$10,646,321. |
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. The amount of interest expense recognized in Behrends 2014 income statement is:
| none of the above
|
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