Question: On February 28 2011 Newman Spears Enterprises Inc issued

On February 28, 2011, Newman & Spears Enterprises, Inc., issued $150,000 worth of 7% bonds at 92. The interest on these bonds is paid annually on February 28.
1. What are the interest payments for the first two years?
2. Was the market interest rate higher or lower than 7% at the date of issue?
3. Will the interest expense be higher or lower than the interest payment?

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  • CreatedSeptember 01, 2014
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