Question
On January 1, 2019, a company issued $401,300 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue
On January 1, 2019, a company issued $401,300 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $415,753 based on a 10% market interest rate. The effective-interest method of amortization is used. What is the book value of the bond liability as of June 30, 2019 (to the nearest dollar)?
Multiple Choice
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$404,590.
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$401,300.
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$419,043.
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$412,463.
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
