Assume that on January 1, 2021, Water World issues $200,000 of 9% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.Required:1. If the market rate is 9%, the bonds will issue at $200,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.2. If the market rate is 10%, the bonds will issue at $187,538. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.3. If the market rate is 8%, the bonds will issue at $213,590. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
Assume that on January 1, 2021, Water World issues $200,000 of 9% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Required:
1. If the market rate is 9%, the bonds will issue at $200,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
2. If the market rate is 10%, the bonds will issue at $187,538. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
3. If the market rate is 8%, the bonds will issue at $213,590. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
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