Essay
Bond issue price and discount amortization
On January 1, 2020, Oxnard Corp. issued ten-year, 10% bonds with a face value of $ 500,000, with interest payable semi-annually on June 30 and December 31. At the time, the market rate was 12%.
Instructions
a) Use your calculator to calculate the issue price of the bonds. Round the answer to the nearest dollar.
a), assume that the issue price was $ 442,000. Prepare the amortization table for 2020. Round values to the nearest dollar.
b) Independent of your solution to part
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a) N 20 %i 6 FV 500,...View Answer
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