Pg 965 QS 14-5 -

Issue of Bonds at par between interest dates

Purity Vegetable Corp. issued $200,000 of 6% bonds on November 1st 2020, at par value. The bonds were dated October 1st, 2020, and pay interest each April 1 and October 1. Record the issue of the bonds on November 1st, 2020.

Pg 965 QS 14-6 -

Calculating the price of a bond using PV tables (or business calculator PV function)

On August 1, 2020, Billboard Inc. issued $520,000 of 10%, seven-year bonds. Interest is to be paid semiannually. Calculate the issue price of the bonds if the market interest rate was:

a. 12%b. 10%c. 14%