On July 1, 2018, Shebchuk Company issued $300,000 of 9 percent, ten- year bonds when market...

  

 

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On July 1, 2018, Shebchuk Company issued $300,000 of 9 percent, ten- year bonds when market rate of interest was 8%. The bonds mature in ten years and pay interest on June 30 and December 31. Shebchuk Company's fiscal year ends on December 31 and the company uses effective interest method of amortization. Determine the issue price of the bonds. Cox Company issues bonds with a par value of $800,000 on their issue date for $832,440. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%. Compute the total interest expense for Cox Company over the life of the bonds. On July 1, 2018, Shebchuk Company issued $300,000 of 9 percent, ten- year bonds when market rate of interest was 8%. The bonds mature in ten years and pay interest on June 30 and December 31. Shebchuk Company's fiscal year ends on December 31 and the company uses effective interest method of amortization. Determine the issue price of the bonds. Cox Company issues bonds with a par value of $800,000 on their issue date for $832,440. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%. Compute the total interest expense for Cox Company over the life of the bonds.