A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007 . Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2007?
2. A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007 . Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2007 balance sheet?
3. A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2006 . Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. What is interest expense for 2007, using straight-line amortization?
No comments:
Post a Comment