Astill Industries issued $1 million in 8%, 10-year bonds on Jan 1, 2019, when the market rate
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Question:
Astill Industries issued $1 million in 8%, 10-year bonds on Jan 1, 2019, when the market rate for similar bonds was 10%. The bonds pay interest semi-annually on July 1, and Dec 31. At 12/31/2021, when the market rate for similar bonds is 6%, AI considers whether to retire the bonds and reissue them at 6%. The early retirement of the bonds would result in an economic gain of $[amount].
Group of answer choices
- $112,961.
- $(112,961).
- $242.161.
- $0.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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