Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please help with #14 and #15 14) a $500,000 bo

please help with #14 and #15 14) A $500,000 bond issue...

70.2K

Verified Solution

Question

Accounting

please help with #14 and #15
image
14) A $500,000 bond issue sold for $510,000. Therefore, the bonds: A) Sold at a premium because the stated interest rate was higher than the market rate. B) Sold for the $500,000 face amount plus $10,000 of accrued interest. C) Sold at a discount because the stated interest rate was higher than the market rate. D) Sold at a premium because the market interest rate was higher than the stated rate. 15) Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Interest Increase in Carrying Date Cash Paid Expense Value Carrying Value 01/01/2021 $ 8,640,967 06/30/2021 $ 300,000 $ 345,639 $ 45,639 8,686,606 12/31/2021 300,000 347,464 47,464 8,734,070 06/30/2022 300,000 349,363 49,363 8,783,433 12/31/2022 300,000 351,337 51,337 8,834,770 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) A) 3%. B) 4% C) 6%. D) 8%

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The Wildcat Oil Company is trying to decide whether to lease or buy a new computer-assisted...

Finance
Q

5 of industrial examples :(with photo) -compression spring

Mechanical Engineering
Q

Consider the debate over the validity of projective tests. Do you believe that people reveal underlying...

Psychology
Q

Mutations that inhibit the function of photosystem I but not photosystem II would result in...

Biology
Q

Q19 A solid of density D is floating in a liquid of density d If...

Physics
Q

Which rational expression represents 2 9 3x 9x when simplified if x 0 or 3...

Basic Math
Q

given and the equation pass The cost in dollars of manufacturing items is given 2...

Basic Math
Q

The mean life of a television set is 123 months with a standard deviation of...

Statistics
Q

x y dx 3xy dy 0 Final answer 1 1 2 In 1 4 2...

Calculus
Q

A COUPLE FILES MARRIED FILING JOINT IN 2019 AND HAS ADJUSTED GROSS INCOME OF $255,000...

Accounting
Q

Required information Skip to question [The following information applies to the questions displayed...

Accounting
Q

The income from operations and the amount of invested assets in each division of Beck...

Accounting