Question
PLEASE HURRY Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in front of the
PLEASE HURRY
Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in front of the box.)
Use the effective interest rate method.
The following information pertains to a bond issue of the Fusso Corporation:
Maturity value: $1,000,000
Maturity date: December 31, 2024
Stated interest rate (Coupon rate): 5%
Interest payments are made annually on December 31st
Date of issue: January 1, 2017
Effective (market) interest rate (Yield to maturity) at issue: 4.75%
Fusso financed $___________ by this bond issue on January 1, 2017. (Assume there was no expenses on issuing the bond.)
The interest expense in 2018 was $_____________
On December 31, 2021 the Fusso pays $1,009,000 to retire entire bonds. $1,009,000 does not include the coupon payment. The coupon is paid just before the announcement of the bond retirement.
The amount of the gain or loss on the bond retirement is $_______________. (Round to the nearest dollar. If it is a loss, use minus sign, such as -125.)
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