Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds' annual
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Question:
Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,862.
1. What is the amount of the discount on these bonds at issuance?
2. How much total bond interest expense will be recognized over the life of these bonds?
3. Prepare a straight-line amortization table like Exhibit 14.7 for these bonds.
Expert Answer:
In the Present question Principal 180000 Coupon rate 400 82 Years 6 Required rate 500 102 Yearly Int... View the full answer
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