Question
Rubin's corporation issued $10 million, of 5% coupon bonds on January 1st 2020 due 31 December 2025. The market rate at issuance was 6%
Rubin's corporation issued $10 million, of 5% coupon bonds on January 1st 2020 due 31 December 2025. The market rate at issuance was 6% annual, and the bond pays interest on June 30th and December 31st of each year. The company uses the effective market rate method to amortize the discount/premium on bond. The interest expense accrued as of June 30, 2021 is: a) $290,490 b) $250,000 c) $300,000
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
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