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Exercise 14 8 Computing bond interest and price, recording bond issuance LO P3 Citywide Company issues bonds with a par value of $78 000 on their stated issue date The bonds mature in eight years and

Exercise 14-8 Computing bond interest and price, recording bond issuance LO P3 Citywide Company issues bonds with a par value of $78,000 on their stated issue date. The bonds mature in eight years and pay 11% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest payment for these bonds? Answer is complete and correct Semiannual cash Semiannual Par (maturity) value Rate interest payment 5.5% 78,000 4,290 2. How many semiannual interest payments will be made on these bonds overtheir life? Answer is complete and correct 16 Number of payments 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium OOAt a premium At a discount At par

 

Apr 08 2020 View more View Less

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