Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. NOTE: The requirement is referring to total interest and principal. $

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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please explain how each section is calculated. And how to come up with the numbers 

Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the
market rate was 6%. Interest was paid semi-annually.
A. Calculate the cash flows the purchaser of the bonds (the investor) will receive throughout the bond
term. NOTE: The requirement is referring to total interest and principal.
$4
B. Would an investor be willing to pay more or less than face value for this bond?
Less than
Transcribed Image Text:Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. NOTE: The requirement is referring to total interest and principal. $4 B. Would an investor be willing to pay more or less than face value for this bond? Less than
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