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***Please show how to get to answer*** 4. F Corporation has authorized an issue of 15%, 10-year bonds. At the issue date the market rate
***Please show how to get to answer***
4. F Corporation has authorized an issue of 15%, 10-year bonds. At the issue date the market rate of interest for this type of bond is 13.5%. On these facts it might be expected that: A) The company will find it difficult to sell the bonds B) The bonds will be sold at a premium C) The bonds will be sold at a discount D) The bonds will be sold at face value E) The bond contract will be rewritten because it is inconsistent. ***USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT TWO (2) QUESTIONS:*** On January 1, 2015, ABC Company issued $10,000 of 8%, 12 year bonds for $9,632 cash. The bonds are dated January 1, 2015, and pay interest annually each December 31. The market rate of interest on the bonds is 8.5% on the issue date. 5. The bond interest expense to be reported on the income statement for the year ended December 31, 2015will be somewhere between: A) 0 and $774 B) $775-794 C) $795-814 D) $815-834 E) $835 and $1,000 6. The cash paid for interest on December 31, 2015would be: A) $768 B) $800 C) $816 D) $850Step by Step Solution
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