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BryceDiesel
Mar 7, 2013, 09:43 AM
Prepare a debt amortization schedule for a bond issued at discount. Assume that the bond matures in 12 years with market interest rate at time of issue—10% annually and 5% semiannually. The stated interest rate is 8%. The interest is paid semiannually.

odinn7
Mar 7, 2013, 10:01 AM
You prepare it... it's your lesson, not ours.

Do it and post it here if you are unsure. We don't do homework and hand out answers.

BryceDiesel
Mar 7, 2013, 10:15 AM
I was waondering if the question is complete, from what I understand there should be a price of the bond at the time of purchase or at least a bond amount. Do I just need to make up a bond amount? But thanks for your rude comments. I will do my own work I just have not had time to post the reainder of the question.

odinn7
Mar 7, 2013, 10:20 AM
There is no way for us to know if the question is complete as we don't have the original in front of us.

Also, there were no rude comments. Your title demanded we solve your accounting problems. I told you that this is not how this site works. We are a question and answer site, not a homework answering site. If we did your homework, you wouldn't learn. Someone may help you with it if you attempt to do it and post your results and they are wrong, but nobody is going to do the work for you. If you think that's rude, then I just figure it's because you're upset that you didn't get the answer that you wanted.

And yeah, it looks like you could make up any amount as long as you can show the schedule that they ask for.

Thanks!

pready
Mar 7, 2013, 10:26 AM
Bonds are usually issued in $1,000 increments.