nancyzerv
May 1, 2009, 05:09 PM
This is a strange question. I do know how to calculate bond interest payments, but I never saw this before.
ABC Company issues 100,000 of 10% (paid semiannually) stock on April 1st, 2009 @ face value. The bonds are dated January 1, 2009 (essentially backdated) and mature on January 1, 2011. How do I calculate the total interest for the year ending December 31,2009?
From the issue date April 1 or from the date on the bond... January 1?
Help.:eek:
ABC Company issues 100,000 of 10% (paid semiannually) stock on April 1st, 2009 @ face value. The bonds are dated January 1, 2009 (essentially backdated) and mature on January 1, 2011. How do I calculate the total interest for the year ending December 31,2009?
From the issue date April 1 or from the date on the bond... January 1?
Help.:eek: