On January 1, 2021, Saints issued $4,825,000, 6% 5-year bonds dated January 1, 2021. The bonds pay interest semiannually on June 30 and December 31. The bonds were issued to yield 4%. 2.0% 3.0% 4.0% 6.0% Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an ordinary annuity for 5 periods Present value of an ordinary annuity for 10 periods 0.90573 0.86261 0.82193 0.74726 0.82035 0.74409 0.67556 0.55839 4.71346 4.57971 4.45182 4.21236 8.98259 8.53020 8.11090 7.36009 Required: (1) Determine the following: Principal to be repaid: Semi-annual interest payments: n=_10 (2) Determine the cash proceeds from the bond issue.

On January 1, 2021, Saints issued $4,825,000, 6% 5-year bonds dated January 1, 2021. The bonds pay interest semiannually on June 30 and December 31. The bonds were issued to yield 4%. 2.0% 3.0% 4.0% 6.0% Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an ordinary annuity for 5 periods Present value of an ordinary annuity for 10 periods 0.90573 0.86261 0.82193 0.74726 0.82035 0.74409 0.67556 0.55839 4.71346 4.57971 4.45182 4.21236 8.98259 8.53020 8.11090 7.36009 Required: (1) Determine the following: Principal to be repaid: Semi-annual interest payments: n=_10 (2) Determine the cash proceeds from the bond issue.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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