Class notes - 1. Market rate of interest 2. Computation of...

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Chapter 14 Long term liabilities and Bonds Know how to do an amortization schedule for test Interest paid to bondholder Stated rate * face value Interest that is actually recorded as interest expense by issuer Market Rate * carrying market value Calculating selling price
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Unformatted text preview: 1. Market rate of interest 2. Computation of selling price: a. PV of maturity b. PV of interest payments c. Market rate of interest 3. Semi annual interest paying bonds a. Require doubling the payments b. Interest inneeded...
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Class notes - 1. Market rate of interest 2. Computation of...

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