ACCT 1A: Financial Accounting…
Ch. 10-13
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On January 1, 2011, Kidman Enterprises issues bonds that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. |
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How much interest will Kidman pay (in cash) to the bondholders every six months (Do not round intermediate calculations. Omit the “$” sign in your response.) |
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2. On January 1, 2011, Kidman Enterprises issues bonds that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. |
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How much interest will Kidman pay (in cash) to the bondholders every six months (Do not round intermediate calculations. Omit the “$” sign in your response.) |
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3. Moss issues bonds with a par value of $90,000 on January 1, 2011. 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 $85,431. |
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What is the amount of the discount on these bonds at issuance (Omit the “$” sign in your response.) |