Point North Inc. issued bonds on September 1, 2014, with a par value of $150,000. The bonds
Question:
a. What is the semi-annual interest payment for these bonds?
b. How many semi-annual interest payments will be made on these bonds over their life?
c. Use the information about the interest rates to decide whether the bonds were issued at par, at a discount, or at a premium.
d. Calculate the issue price of the bonds on September 1, 2014.
e. Present the journal entry that would be made to record the bonds’ issuance.
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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