Question
Please, solve this accounting problem. Thank you! Batata inc. issues 12.50%, 10-year bonds with a par value of $470,000 and semiannual interest payments. On the
Please, solve this accounting problem. Thank you!
Batata inc. issues 12.50%, 10-year bonds with a par value of $470,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.50%, which implies a selling price of 128 7/8. The straight-line method is used to allocate interest expense.
What are the issuers cash proceeds from issuance of these bonds? _____ What total amount of bond interest expense will be recognized over the life of these bonds? | |
Payments of ______ par value maturity _______ less amount borrowed ________
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