On March 1, 2025, after the bond interest payment, TTL had excess cash and went to the open market and redeemed 25% of the bond issue when the market interest rate was 5%.

Required

Record the redemption entry (only); show supporting calculations.

Bond amount = $12,000,000

Coupon rate = 4%

Semi annual payment= on Sept. 1 and Mar. 1

Ready to take to market Sept. 1, 2018

Original yield rate = 3%

Answer rating: 100% (QA)

Step 1 Expected interest period at the end of 3 month period is as follows t ... View the full answer