Question
Point North Inc. issued bonds on September 1, 2020, with a par value of $150,000. The bonds mature in 15 years and pay 8% annual
Point North Inc. issued bonds on September 1, 2020, with a par value of $150,000. The bonds mature in 15 years and pay 8% annual interest in two semiannual payments. On the issue date, the annual market rate of interest for the bonds turned out to be 6%. (Use TABLE 14A.1 and TABLE 14A.2.) (Use appropriate factor(s) from the tables provided.) a. What is the semiannual interest payment for these bonds? (Do not round intermediate calculations. Round the answer to the nearest whole dollar.) b. How many semiannual interest payments will be made on these bonds over their life? c. Use the information about the interest rates to decide whether the bonds were issued at par, at a discount, or at a premium. multiple choice Issued at a discount Issued at a premium Issued at par d. Calculate the issue price of the bonds on September 1, 2020. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) e. Present the journal entry that would be made to record the bonds issuance. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
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