Question
On January 1, 20x1, Pitchfork Company issued a $750,000, 6%, 5-year bond for $690,109 and incurred debt issuance costs of $20,000. The bond pays interest
On January 1, 20x1, Pitchfork Company issued a $750,000, 6%, 5-year bond for $690,109 and incurred debt issuance costs of $20,000. The bond pays interest annually every December 31st. At of the date of issuance, the market rate was 8% APR. The adjusted market rate is 8.70%.
What is the carrying value of the bond at December 31, 20x1, after the first interest payment has been recorded? The company amortizes the discount and debt issuance costs using the effective interest method.
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AWS Security Cookbook Practical Solutions For Managing Security Policies Monitoring Auditing And Compliance With AWS
Authors: Heartin Kanikathottu
1st Edition
1838826254, 978-1838826253
