sandersn

A13-5 Debt Issuance-Interest Expense: Sanderson Corp. issued $20,000,000 of bonds payable on 1 June 20X5. The interest at 5.5% per annum, payable semi-annually each 31 May and 30 Nove 6% per annum. year bond each 31 May and 30 November. The bonds were issued to yield Required: 1. Calculate the proceeds from issuan bond is outstanding. ce and interest expense and interest paid for the first six months that the A the original maturity date. Also ance ifthe y eld rate is 8% and the bond is issued on 1 June 20X7, still with A the original maturity date. Also calcul bond is outstanding. ate interest expense and interest paid for the first six months that the bond is issued on 30 November 209, so calculate interest expense and interest paid for the first six months 3. Calculate the proceeds from issuance if the yield rate is 4% and the still with the original maturity date. Al that the bond is outstanding. 4. Explain why interest expense is different in requirements 1 to 3, even though interest paid is identical