Exercise Algo Determine the price of bonds; issuance; effective interest L
The Bradford Company issued bonds, dated January with a face amount of $ million on January
The bonds mature on December years
For bonds of similar risk and maturity, the market yield is
Interest is paid semiannually on June and December
Required:
Determine the price of the bonds at January
to Prepare the journal entries to record their issuance by The Bradford Company on January interest on June
at the effective rate and interest on December at the effective rate
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Complete this question by entering your answers in the tabs below.
Req to
Determine the price of the bonds at January
Note: Enter your answer in whole dollars.
Price of bonds
