Winter Corp. issued 10-year bonds with a par value of $700,000 plus the last 4 digits...
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Winter Corp. issued 10-year bonds with a par value of $700,000 plus the last 4 digits of your student number on December 31, 2020. For example, if your student number is T00055444, the par value is $705,444. Use your own student number The coupon rate is 8%. The bonds will yield 6% on an annual basis. Interest is paid semi annually on June 30 and December 31. Winter Corp uses the effective interest method to amortize premiums or discounts. The bond quote was: 114.87747 All amounts are rounded to the nearest dollar (no decimals required). The fiscal year end is December 31. Required: 1. Calculate the selling price of the bond issuance Selling price of Bond Issuance = 2 Prepare the bond amortization table for the first three periods 3 Prepare the Journal entries for a The bond issuance (December 31. 2020) b The first interest payment (June 30, 2021) C The second interest payment (December 31 2021) Winter Corp. issued 10-year bonds with a par value of $700,000 plus the last 4 digits of your student number on December 31, 2020. For example, if your student number is T00055444, the par value is $705,444. Use your own student number The coupon rate is 8%. The bonds will yield 6% on an annual basis. Interest is paid semi annually on June 30 and December 31. Winter Corp uses the effective interest method to amortize premiums or discounts. The bond quote was: 114.87747 All amounts are rounded to the nearest dollar (no decimals required). The fiscal year end is December 31. Required: 1. Calculate the selling price of the bond issuance Selling price of Bond Issuance = 2 Prepare the bond amortization table for the first three periods 3 Prepare the Journal entries for a The bond issuance (December 31. 2020) b The first interest payment (June 30, 2021) C The second interest payment (December 31 2021)
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Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
Posted Date:
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