still can not get the $104,000 and the PV from every each year: a. Time (half-year) 1
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Question:
still can not get the $104,000 and the PV from every each year: a. Time (half-year) 1 2 3 4 5 6 Cash Flow $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $104,000.00 PV of cash flow $3,809.52 $3,628.12 $3,455.35 $3,290.81 $3,134.10 $77,606.40 Issue price $94,924 (Sum of PV of cash flows).
here is the question again:
3 year Bonds are issued at face value of $100,000 on January 1, 2016, and a stated
interest rate of 8%.
a. Calculate the issue price of the bonds assuming a market interest rate of 10%.
b. Prepare the schedule of amortization using the effective interest method.
c. Prepare journal entries of 1/1/2016, 7/1/2016 & 12/31/2016.
I'am totally lost here.
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