Question
On January 1, 2018 ABC Corporation issued a five-year $1,200,000, 7%, at $1,250,000. Interest is paid annually on December 31. The market rate of interest
On January 1, 2018 ABC Corporation issued a five-year $1,200,000, 7%, at $1,250,000. Interest is paid annually on December 31. The market rate of interest is 6%.
Required:
- Using the effective interest rate method, what is the interest expense at December 31, 2018?
Interest Expense at December 31,2018 = $___________________________
- What is the carrying value of the bond at December 31, 2018?
Carrying value of bond on December 31, 2018 = $ ________________________
- What is the carrying value of the bond at January 1, 2023?
Carrying value of the bond at January 1, 2023 =$_________________________
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Multicriteria Decision Making Systems Modeling Risk Assessment And Financial Analysis For Technical Projects
Authors: Timothy Havranek, Doug MacNair, James Wolf
3110765640, 978-3110765649
