On August 31, 2021, BEAST Company issued at 104 plus accrued interest, three thousand 10% bondswith a face amount of ₱1,000 per bond. The bonds are dated April 1, 2021, mature on March 31, 2026,and pay interest every April 1 and October 1. The bonds were issued through an underwriter to whomthe entity paid bond issue cost of ₱120,000. Requirements: 1. How much is the interest expense for the year ended December 31, 2021? 2. How much is the carrying value of the bond on December 31, 2021?

On August 31, 2021, BEAST Company issued at 104 plus accrued interest, three thousand 10% bondswith a face amount of ₱1,000 per bond. The bonds are dated April 1, 2021, mature on March 31, 2026,and pay interest every April 1 and October 1. The bonds were issued through an underwriter to whomthe entity paid bond issue cost of ₱120,000. Requirements: 1. How much is the interest expense for the year ended December 31, 2021? 2. How much is the carrying value of the bond on December 31, 2021?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 5P

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