PDA

View Full Version : Bond computations: Straight-line amortization


CAD21
Feb 11, 2014, 04:02 PM
Southlake corporation issued $900,000 f 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.
Case A - bonds issue at 100
Case B - bonds issue at 96
Case C - bonds issued at 105
Cash flow on the issuance date
Total cash outcome over the life of the bond issue
Interest expense for the year ended December 31, 20X1

ma0641
Feb 11, 2014, 06:29 PM
If you look at similar questions you will find someone else asked the same homework under "Northern Corporation" except it is $800,000 @7%.