sailorbunny
New member
- Aug 4, 2010
- 1
- 0
- 1
5. A company issued 5 year, 7.5% bonds with a par value of $100,000. The market rate when the bonds were issued was 8.0%. The company received $97,975.88 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
6. A company borrowed $60,000 cash from the bank and signed a 6-year note at 7%. (The present value of an annuity for 6 years at 7% is 4.7665). The annuity payments equal $12,588. The present value of the loan is:
6. A company borrowed $60,000 cash from the bank and signed a 6-year note at 7%. (The present value of an annuity for 6 years at 7% is 4.7665). The annuity payments equal $12,588. The present value of the loan is: