ex+14-19+ex+14-27+bond+je+coupon+je - Priceofbond:...

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Price of bond: JOURNAL ENTRIES: Interest payments  $15,000.00  semi-annual Feb 03: bond face amount  $300,000.00  Cash market rate (yield) 12.00% Discount on BP number of periods 7 3.5 years Aug 03: PV of interest annuity $83,735.72  Interest expense PV of maturity pmt $199,517.13  Discount on BP $283,252.86  issue price Cash Amortization schedule (effective interest rate method): Dec 03 (5/6 months of nex amortize  remaining  Interest expense month payment interest discount discount Discount on BP Aug-03  $15,000.00   $16,995.17   $1,995.17   $14,751.97  Bond interest payable Feb-04  $15,000.00   $17,114.88   $2,114.88   $12,637.09  Aug-04  $15,000.00   $17,241.77   $2,241.77   $10,395.32  Feb 04 (last month of six m Feb-05  $15,000.00   $17,376.28   $2,376.28   $8,019.04  Interest expense Aug-05  $15,000.00   $17,518.86   $2,518.86   $5,500.18  Bond interest payable Feb-06  $15,000.00 
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This note was uploaded on 03/01/2011 for the course BUS 165B taught by Professor Barrymishra during the Spring '10 term at UC Riverside.

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ex+14-19+ex+14-27+bond+je+coupon+je - Priceofbond:...

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