Question
On October 1, 2016 Macklin Corporation issued 10-year bonds with a face value of $50,000,000. Interest is paid annually on December 31. The company uses
On October 1, 2016 Macklin Corporation issued 10-year bonds with a face value of $50,000,000. Interest is paid annually on December 31. The company uses the effective interest method. Coupon Rate 6.5%. Market Rate 6%.
- Find the issue price.
- The entry to record the issuance of the bonds.
- Prepare the journal entry to record the first interest payment on December 31.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
