# On January 1, a company purchased 3%, 20-year corporate bonds for \$69,033,776 as an investment. The bonds have a face amount of \$80 million and are priced to yield 4%. Interest is paid semiannually. Prepare the journal entry to record revenue at the effective interest rate on December 31, the second interest payment date.

Question
Asked Jan 20, 2020
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On January 1, a company purchased 3%, 20-year corporate bonds for \$69,033,776 as an investment. The bonds have a face amount of \$80 million and are priced to yield 4%. Interest is paid semiannually. Prepare the journal entry to record revenue at the effective interest rate on December 31, the second interest payment date.

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