Question

Christmas Anytime issues $730,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.

Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:

**Required:**

**1.**

a) The market interest rate is 6% and the bonds issue at face
amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) **(Use
appropriate factor(s) from the tables provided.** **Do
not round interest rate factors.)**

what is the Issue price_________

Date | Cash Paid | Interest Expense | Increase in Carrying Value | Carrying Value |

01/01/18 | ||||

06/30/18 | ||||

12/31/18 |

**b)** The market interest rate is 7% and the bonds
issue at a discount. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
**(Use appropriate factor(s) from the tables
provided.** **Do not round interest rate
factors.)**

What is the issue price________?

Date | Cash Paid | Interest Expense | Increase in Carrying Value | Carrying Value |

01/01/18 | ||||

06/30/18 | ||||

12/31/18 |

c) The market interest rate is 5% and the bonds issue at a
premium. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
**(Use appropriate factor(s) from the tables
provided.** **Do not round interest rate
factors.)**

What is the issue price_______?

Date | Cash Paid | Interest Expense | Decrease in Carrying Value | Carrying Value |

01/01/18 | ||||

06/30/18 | ||||

12/31/18 |

Answer #1

Christmas Anytime issues $710,000 of 5% bonds, due in 10 years,
with interest payable semiannually on June 30 and December 31 each
year.
Calculate the issue price of a bond and complete the first three
rows of an amortization schedule when:
1. The market interest rate is 5% and the bonds
issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of
$1) (Use appropriate factor(s) from the tables
provided. Do not round interest rate...

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(Use appropriate factor(s) from the tables provided. Do not
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date
cash paid
interest expense
decrease in carrying value
carrying value
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[The following information applies to the questions
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Christmas Anytime issues $750,000 of 7% bonds, due in 10 years,
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year.
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issue at a discount. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
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Christmas Anytime issues $740,000 of 6% bonds, due in 15 years,
with interest payable semiannually on June 30 and December 31 each
year. Calculate the issue price of a bond and complete the first
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