a company issues 200,000 of 20 year 6% bonds at 95. if interest is paid semi-annually,...

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a company issues 200,000 of 20 year 6% bonds at 95. if interest is paid semi-annually,...

a company issues 200,000 of 20 year 6% bonds at 95. if interest is paid semi-annually, what is the amount of bond interest expense recorded on an interest date?

business accounting

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Answer 1

Answer #1

Coupon rate = 6%/2 = 3% semiannually

interest on bond = (200,000 x $100) x 3% = $600,000

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Answer 2

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a company issues 200,000 of 20 year 6% bonds at 95. if interest is paid semi-annually,...

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a company issues 200,000 of 20 year 6% bonds at 95. if interest is paid semi-annually,...

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a company issues 200,000 of 20 year 6% bonds at 95. if interest is paid semi-annually,...

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a company issues 200,000 of 20 year 6% bonds at 95. if interest is paid semi-annually,...