Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the...
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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Cash interest Decrease in balance Date 1/1/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 $ 7,000 7,000 7,000 7,000 7,000 7,000 Effective interest 7,000 7,000 $ 6,211 6,187 6,163 6,137 6/30/2023 12/31/2023 6/30/2024 12/31/2024 What is the annual stated interest rate on the bonds? 6,112 6,085 6,057 6,029 $789 813 837 863 888 915 943 971 Outstanding balance $ 207,020 206,230 205,417 204,580 203,717 202,829 201,913 200,971 200,000 Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Cash interest Decrease in balance Date 1/1/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 $ 7,000 7,000 7,000 7,000 7,000 7,000 Effective interest 7,000 7,000 $ 6,211 6,187 6,163 6,137 6/30/2023 12/31/2023 6/30/2024 12/31/2024 What is the annual stated interest rate on the bonds? 6,112 6,085 6,057 6,029 $789 813 837 863 888 915 943 971 Outstanding balance $ 207,020 206,230 205,417 204,580 203,717 202,829 201,913 200,971 200,000
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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