citywide Company issues bonds with a par value of 65000 on t

html Chapter 10 Homework Help Save&Exit; Su Check my wo 3 Citywide Company issues bonds with a par value of $65,000 on their stated issue date The bonds mature in nine years and py 10% anual interest in semannual po ments. On the issue date, the annual market rate for the bonds is 8% dable lable 2 lable B.3, and Jable B.4) (Use appropriate factors) from the tables provided) 10 1. What is the amount of each semiannual interest payment for these bonds? 2 How many semiannual interest payments will be made on these bonds over their life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. 4. Compute the price of the bonds as of their issue date S. Prepare the journal entry to record the bonds\' issuance Print Complete this question by entering your answers in the tabs below. Req 5 What is the amount of each semiaenual interest payment for these bonds? How many semiannual interest payments will be made on these bonds over their life? Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium

Solution

Answer :

Requirement -1 :

Requirement -2 :

Requirement -3 :

Journal Entry to record Bond Issue and journal entry number 2 to record payment of interest

Per (Maturity Value )	Semmiannual Rate	Semiannual Cash interest payment	Workings
$                      65,000.00	5%	$     3,250.00	= 65000*5%
Number of Payments	18	= 9years *2 times
Whether the bons are issued at par or at discount or at a premium	At par	Given in the question