On January 1, 2021, White Water issues $410,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the bonds will issue at $382,141.
Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)
Assuming the market interest rate on the issue date is 8%, the bonds will issue at $382,141.
Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)
1 answer:
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Answer:
See below
Step-by-step explanation:
Here we need to prove that ,
Imagine a right angled triangle with one of its acute angle as .
- The side opposite to this angle will be perpendicular .
- Also we know that ,
And by Pythagoras theorem ,
Where the symbols have their usual meaning.
Now , taking LHS ,
- Substituting the respective values,
- From equation (i) ,
Since LHS = RHS ,
Hence Proved !
I hope this helps.