Question: BONDS ISSUED AT FACE VALUE ON AN INTEREST DATE ABC Companys accounting year ends on December 31. On December 31, 200A, ABC issued 10-year, 12%

BONDS ISSUED AT FACE VALUE ON AN INTEREST DATE

ABC Companys accounting year ends on December 31. On December 31, 200A, ABC issued 10-year, 12% bonds with a face value of 100,000. The bonds are dated December 31, call for semi-annual interest

payments on June 30 and December 31, and mature in 10 years on December 31. ABC made the required

interest and principal payments when due.

Required :

1.The face value and the carrying value of the bond

2.How much is premium and discount

3.How much Interest payment was made on December 31,200xB

4.What is the nominal rate and effective rate of interest

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