On June 30, 2019, Gaston Corporation sold $690,000 of 9% face value bonds for $654,190.11. On December 31, 2019, Gaston sold $420,000 of this same bond issue for $442,182.52. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Compute the effective yield rate on each issuance of Gaston's 9% bonds for june 30 2019 issuance for dec 31 2019 issuance
On June 30, 2019, Gaston Corporation sold $690,000 of 9% face value bonds for $654,190.11. On December 31, 2019, Gaston sold $420,000 of this same bond issue for $442,182.52. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Compute the effective yield rate on each issuance of Gaston's 9% bonds for june 30 2019 issuance for dec 31 2019 issuance
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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On June 30, 2019, Gaston Corporation sold $690,000 of 9% face
Compute the effective yield rate on each issuance of Gaston's 9% bonds
for june 30 2019 issuance
for dec 31 2019 issuance.
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