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please I need help to figure this out! if you can also show the way to solve this, it would be great! 2 QS 14-6
please I need help to figure this out! if you can also show the way to solve this, it would be great!
2 QS 14-6 Straight-Line: Bond computations LO P2 1.66 points Enviro Company issues 8%, 10-year bonds with a par value of $270,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. eBook 1. Using the implied selling price of 87 42, what are the issuer's cash proceeds from issuance these bonds? Hint Cash proceeds $ 236,250 2. What total amount of bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: payments of Par value at maturity Total repayments Less amount borrowed (from part 1) Total bond intamant URARA C 2 2. What total amount of bond interest expense will be recognized over the life of these bonds? 1.66 points Total Bond Interest Expense Over Life of Bonds: Amount repaid: payments of Par value at maturity Total repayments Less amount borrowed (from part 1) Total bond interest expense eBook 0 Hint $ 0 Print 3. What is the amount of bond interest expense recorded on the first interest payment date? Bond interest expenseStep by Step Solution
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