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

Question

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] · Answer 1 · 2022-06-26T01:53:33+03:00

alekssr [168]3 years ago

6 0

Answer:

Step-by-step explanation: