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Zero Coupon Bonds On 1/1/2020, REYLO issued bonds with a total par value of $100,000, a 5-year term, a stated rate of 0% (zero coupon
Zero Coupon Bonds
On 1/1/2020, REYLO issued bonds with a total par value of $100,000, a 5-year term, a stated rate of 0% (zero coupon bonds) and a market rate of 8%.
Beginning Carrying Value =
Total Discount =
Period
Beginning Carrying Value
Market Rate
Interest Expense
Cash
Interest Paid
Discount Amortization
Ending Carrying Value
1/1/2020 entry:
12/31/2020 entry:
12/31/2021 entry:
Value on Balance Sheet at 12/31/2021:
Bonds Payable: - Bond Discount: ________________ Bonds Payable, Net:
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