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Yuri [45]
3 years ago
9

On January 1, 2012, Instaform Company issued 10% bonds with a principal amount of $ 50 million, dated January 1. The bonds matur

e in 2031 (20 years). The market yield for bonds of similar risk and maturity is 12% Interest is paid semiannually.
Required:

1. Determine the price of the bonds at January 1, 2012, and prepare the journal entry to record their issuance by Instaform.

2. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2012, and prepare the journal entry to record their issuance by Instaform.

3. Assume Broadcourt Electronics purchased the entire issue in a private placement the bonds. Using the data in requirement 2. prepare the journal entry to record their purchase by broadcourt
Mathematics
1 answer:
alekssr [168]3 years ago
6 0

Answer:

Step-by-step explanation:

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