Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1 of year 1, congo express airways issu

On January 1 of Year 1, Congo Express Airways issued $4,900,000 of 7%, bonds that...

60.1K

Verified Solution

Question

Accounting

On January 1 of Year 1, Congo Express Airways issued $4,900,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $4,463,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $11,500 every 6 months. The life of these bonds is:

A. 39 years

B. 19 years

C. 43 years

D. 38 years

E. 13 years

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

The naturally occurring isotope K40 is widely spread in the environment. In fact, the average concentration of...

Physics
1.2K views

An old car battery that has an emf of e m f1 = 11.5 V...

Psychology
1.2K views

Single Pulse Transcranial Magnetic Stimulation : Explain the experiments by Amassian et al. (1989) What did the...

Basic Math
1.2K views

2 Points Simplify the expression by using a Double Angle Formula or a Half Angle...

Statistics
1.2K views

Macmillan Learning Suppose a biologist studying the mechanical limitations of growth among different species of...

Accounting
1.2K views

Below are amounts found in the income statements of three companies....

Accounting
1.2K views

Exercise 8-6 Monty Company is a leading manufacturer of sunglasses. One of Monty's products protects...

Accounting
1.2K views

7. True or False- Opportunity costs are not always about a financial amount.

Accounting
1.2K views

A firm earns $760,000 per year, has 10% cost of debt, is worth $10 million,...

Accounting
1.2K views

On October 1, Organic Farming purchases wind turbines for $230,000. The wind turbines are expected...

Accounting
1.2K views

Mirada Company manufactures handheld calculators and has the following information available for the month of...

Accounting
1.2K views

A company reports the following information: Month Units Sold Total Cost January 970 $ 6,520...