Testbank Multiple Choice Question 71

A company issues $25800000, 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 $25357304. Using effective-interest amortization, how much interest expense will be recognized in 2020?

$2535914

$2528400

$2535707

$1264200

Testbank Multiple Choice Question 72

A company issues $24950000, 6.6%, 20-year bonds to yield 7% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $23884381. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet? (Round answer to 0 decimal place, e.g. 52.)

$23925632

$23896982

$23910029

$24950000