On January 1, 2018, Wawatosa Inc. issued 10-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. A. Assuming the bonds were sold at 108.732, what is the selling price of the bonds? $___________ B. Were they issued at a discount or a premium? __________

On January 1, 2018, Wawatosa Inc. issued 10-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. A. Assuming the bonds were sold at 108.732, what is the selling price of the bonds? $_ B. Were they issued at a discount or a premium?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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