Intermediate Accounting Chapter 12 Homework for Credit Problem #1: Debt securities held to maturity Par Value of Bonds Purchased Stated Interest Rate Effective Interest Rate Purchased On Interest Paid Interest for 1/1 - 6/30 paid on Interest for 7/1 - 12/31 paid on Years to maturity $ 800,000 5.00% 2.50% 4.00% 2.00% 11/20X2 Semi-Annual July 1st of current year January 1st of next year 5 10 1.) Compute the value of the bond at acquisition. 2.) Compute the amount of cash to be received at each interest payment date. 3.) Compute the amount of interest revenue at the first interest payment date