Testbank Multiple Choice Question 64

Vaughn Manufacturing issues $19900000 of 10-year, 10% bonds on March 1, 2020 at 97 plus accrued interest. The bonds are dated January 1, 2020, and pay interest on June 30 and December 31. What is the total cash received on the issue date?

$20463833

$19303000

$19634667

$19034667

Testbank Multiple Choice Question 68

A company issues $15700000, 9.8%, 20-year bonds to yield 10% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $15430602. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet?

$15432832

$15444536

$15435174

$15700000