Question
On March 1, 2025, after the bond interest payment, TTL had excess cash and went to the open market and redeemed 25% of the bond
On March 1, 2025, after the bond interest payment, TTL had excess cash and went to the open market and redeemed 25% of the bond issue when the market interest rate was 5%.
Required
Record the redemption entry (only); show supporting calculations.
Bond amount = $12,000,000
Coupon rate = 4%
Semi annual payment= on Sept. 1 and Mar. 1
Ready to take to market Sept. 1, 2018
Original yield rate = 3%
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Step 1 Expected interest period at the end of 3 month period is as follows t ...
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
