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Particulars Bond 1 Value 900,000.00 Period (Years) 6 Contarct Rate 8% Market Yield 6% Interest Payment frequency 2 Interest amount 36,000.00 Discount Rate 3% From
Particulars | Bond 1 |
Value | 900,000.00 |
Period (Years) | 6 |
Contarct Rate | 8% |
Market Yield | 6% |
Interest Payment frequency | 2 |
Interest amount | 36,000.00 |
Discount Rate | 3% |
From the above information answer the followin questions:
a. Is this a premium or discount bond
b. Determine the price of the bond ( using the present value tables )
c. Determine the total amount of interest expense for the bond to maturity (prior to maing the ammortizatin table )
d. Prepare the complete bond ammortization table for this bond till maturity
e. Prepare the journal entries for the date of issuance , first interest payment , nad at maturity (make certain to include the date for each journal entry).
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