Question: Can someone help me out with this question? AMber Ltd issues 2 million $2, 5 year, 6% semi-annual coupon debentures to the public on 1
Can someone help me out with this question?
AMber Ltd issues 2 million $2, 5 year, 6% semi-annual coupon debentures to the public on 1 January 2014. At that date the market requires a 4% return for similar debentures. AMber Ltd's nalance date is 31 December.
Required:
a) Calculate the issue price for the debentures, showing calculations.
b) Prepare a repayment/amortisation schedule for the debentures
c) Provide the journal entries (with narrations) for:
i) 1 January 2014
ii) 31 December 2015 (second year); and
iii) 31 December 2018 (end of the debenture term).
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