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28 Sep 2019
Tano issues bonds with a par value of $95,000 on January 1,2017. The bondsâ annual contract rate is 8%, and interest is paidsemiannually on June 30 and December 31. The bonds mature in threeyears. The annual market rate at the date of issuance is 10%, andthe bonds are sold for $90,177.
1. What is the amount of the discount on thesebonds at issuance?
2. How much total bond interest expense will berecognized over the life of these bonds?
3. Prepare an amortization table using thestraight-line method to amortize the discount for these bonds.
Tano issues bonds with a par value of $95,000 on January 1,2017. The bondsâ annual contract rate is 8%, and interest is paidsemiannually on June 30 and December 31. The bonds mature in threeyears. The annual market rate at the date of issuance is 10%, andthe bonds are sold for $90,177.
1. What is the amount of the discount on thesebonds at issuance?
2. How much total bond interest expense will berecognized over the life of these bonds?
3. Prepare an amortization table using thestraight-line method to amortize the discount for these bonds.
Beverley SmithLv2
28 Sep 2019