Question
On January 1, 2021 Splash City issues $500,000 of 9% bonds, due in 20 years with interest payable semiannually on June 30 and December 31
On January 1, 2021 Splash City issues $500,000 of 9% bonds, due in 20 years with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 10% and the bonds issues at $457,102
- If the market interest rate drops to 7% on December 31, 2022 it will cost $601,452 to retire the bonds. Record the retirement of the bonds on December 31, 2022
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Food And Beverage Cost Control
Authors: Lea R. Dopson, David K. Hayes
5th Edition
0470251395, 978-0470251393
