Question
On January 1 of this year, Barnett Corporation sold bonds with a face value of $506,000 and a coupon rate of 7 percent. The bonds
On January 1 of this year, Barnett Corporation sold bonds with a face value of $506,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest annually on December 31. Barnett uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.)
Required:
1. Complete the following table. The interest rates provided are the annual market rate of interest on the date the bonds were issued.
| Case A 7% | Case B 8% | Case C 6% | ||
| a | cash recieved at issurance | |||
| b | intrest expense recoreded in Year 1 | |||
| c | cash paid for interest in Year 1 | |||
| d | cash paid at maturity for bond principal |
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