Linen Corp. sold $2,500,000 of 11%, 10-year bonds at 106.231 to yield 10% on January 1,...
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Linen Corp. sold $2,500,000 of 11%, 10-year bonds at 106.231 toyield 10% on January 1, 2015. The bonds were dated January 1, 2015,and pay interest on July 1 and January 1. Determine the amount ofinterest expense to be reported on July 1, 2015, and December 31,2015.
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Linen Corp. sold $2,500,000 of 11%, 10-year bonds at 106.231 toyield 10% on January 1, 2015. The bonds were dated January 1, 2015,and pay interest on July 1 and January 1. Determine the amount ofinterest expense to be reported on July 1, 2015, and December 31,2015.
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3.8 Ratings (609 Votes)
Bond Sold 2500000 25000 Price 106231 Coupon 11 Face Value 100 10Years Premium 6231 Yield 10 Premium Amount 155775 July 12015
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