Question: Exercise: Non-Current Liabilities A 3 year bond is sold at the beginning of year 1. It has a principal of $1,000, and 3 annual interest

Exercise: Non-Current Liabilities A 3 year bond is sold at the

Exercise: Non-Current Liabilities A 3 year bond is sold at the beginning of year 1. It has a principal of $1,000, and 3 annual interest coupons of $100 each (10% of the principal). Paid at the end of each year. Calculate the present value of the bond at inception, and show the 3 annual interest coupon journal entries assuming that the bond is priced to yield an effective rate of 10%, 8%, 12%. 100

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