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ALT-BOND-BASICS Johnson Company issued $3,000,000 of bonds with an interest rate of 8% and 6 year...

ALT-BOND-BASICS
Johnson Company issued $3,000,000 of bonds with an interest rate of 8% and 6 year maturity.
The bonds were issued at a price of 102%.
1 How much cash did Johnson Company receive at issuance? 3060000
2 How much will Johnson need to pay off the bonds at maturity?
3 How much interest will Johnson pay per year?
4 Were the bonds issued at face value, at a discount, or at a premium?
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1 How much cash did Johnson Company receive at issuance? $3,000,000*102% $      3,060,000
2 How much will Johnson need to pay off the bonds at maturity? $      3,000,000
3 How much interest will Johnson pay per year? $3,000,000*8% $          240,000
4 Were the bonds issued at face value, at a discount, or at a premium? Since cash received is more than Bond Face value at Premium
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