Williams Co. recently issued bonds with a face value of 10,000,000 and a coupon rate of 3%

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Williams Co. recently issued bonds with a face value of 10,000,000 and a coupon rate of 3% for 8 years. The current market rate of interest is 4% and the bonds pay interest semiannually.

1) Please compute the issuing price of the bond, using a financial calculator or Excel.

2) Please write down the journal entries reflecting the premium or discounts of this bond issuance.

3) Please write down the journal entries reflecting this amortization of the premium or discount at the end of the first year (2 payments)

Related Book For answer-question

Financial Accounting in an Economic Context

ISBN: 978-0470635292

8th Edition

Authors: Jamie Pratt

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Posted Date: Oct 05, 2020 07:50 PM

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Williams Co. recently issued bonds with a face value of 10,000,000 and a coupon rate of 3%

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Financial Accounting in an Economic Context

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