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11 May 2020
Quatro Co. issues bonds dated January 1, 2019, with a par value of $750000. The bonds' annual contract rate is 9% and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of insurance is 8% and the bonds are sold for $769,646
1.) What is the amount of the premium on these bonds at insurance?
2.) How much total bond interest expense will be recognized over the life of these bonds?
3.) Prepare a straight line-amortization table for these bonds
Quatro Co. issues bonds dated January 1, 2019, with a par value of $750000. The bonds' annual contract rate is 9% and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of insurance is 8% and the bonds are sold for $769,646
1.) What is the amount of the premium on these bonds at insurance?
2.) How much total bond interest expense will be recognized over the life of these bonds?
3.) Prepare a straight line-amortization table for these bonds
Irving HeathcoteLv2
11 May 2020