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Use the following to answer questions 4-7 (Round answers to the nearest dollar) The company issues 6.8 %, 10-year bonds with a total face
Use the following to answer questions 4-7 (Round answers to the nearest dollar) The company issues 6.8 %, 10-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 6.9%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). 4. $ (rounded to nearest dollar). What is the issue price of the bond? 5. $ (rounded to nearest dollar). When the company records the first interest payment, how much will the company record for interest expense? 6. $ (rounded to nearest dollar). What is the bond liability (carrying amount) after the first interest payment? 7. $ (rounded to nearest dollar). When the company records the second interest payment, how much will the company record for interest expense?
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