Question

On January 1 of this year, Barnett Corporation sold bonds with a face value of $ 500,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest annually on December 31. Barnett uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases.
Required:
Complete the following table. The interest rates provided are the annual market rate of interest on the date the bonds were issued.
Case A (7%) } & Case B (8%) & Case C (6%)
(a) Cash received at issuance

Answer 1

Case-A              

par value of bonds   500000        

The stated rate of interest 7%        

The market rate of interest 7%        

As stated and the market rate of interest is equal, the bonds are issued at par value.

Therefore,            

Cash received from issuance of bonds   500000    

Interest expense (500000*7%)     35000    

Cash paid for interest in Year-1     35000    

Cash paid fat Maturity     500000

A market economic system is a monetary gadget where forces, called supply and demand, direct the production of goods and services. marketplace economies aren't managed through a government (like a central authority) and are instead based on voluntary exchange.

A market economic system is a financial machine in which the choices concerning investment, production, and distribution to the clients are guided with the aid of the fee indicators created with the aid of the forces of delivering and call for, wherein all suppliers and purchasers are unimpeded by way of charge controls or restrictions on contract freedom.

A marketplace is defined because of the sum general of all the buyers and dealers inside the region or area below consideration. The vicinity may be the earth, or international locations, regions, states, or cities. The cost, value, and charge of gadgets traded are as consistent with forces of delivery and demand in a marketplace.

Learn more about market here brainly.com/question/906651

#SPJ4