citywide Company issues bonds with a par value of $65,000 on their stated issue
ID: 2603349 • Letter: C
Question
citywide Company issues bonds with a par value of $65,000 on their stated issue date. the bonds mature in 9 years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 8%. html Chapter 10 Homework Help Save&Exit; Su Check my wo 3 Citywide Company issues bonds with a par value of $65,000 on their stated issue date The bonds mature in nine years and py 10% anual interest in semannual po ments. On the issue date, the annual market rate for the bonds is 8% dable lable 2 lable B.3, and Jable B.4) (Use appropriate factors) from the tables provided) 10 1. What is the amount of each semiannual interest payment for these bonds? 2 How many semiannual interest payments will be made on these bonds over their life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. 4. Compute the price of the bonds as of their issue date S. Prepare the journal entry to record the bonds' issuance Print Complete this question by entering your answers in the tabs below. Req 5 What is the amount of each semiaenual interest payment for these bonds? How many semiannual interest payments will be made on these bonds over their life? Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premiumExplanation / Answer
Answer :
Requirement -1 :
Requirement -2 :
Requirement -3 :
Journal Entry to record Bond Issue and journal entry number 2 to record payment of interest
Per (Maturity Value ) Semmiannual Rate Semiannual Cash interest payment Workings $ 65,000.00 5% $ 3,250.00 = 65000*5% Number of Payments 18 = 9years *2 times Whether the bons are issued at par or at discount or at a premium At par Given in the questionRelated Questions
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