Tugas Kelompo1 - T ugas Kelompok week 2 Team 3 : Hediati...

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Tugas Kelompok – week 2 Team 3 : Hediati Maulida Neneng Choirunnisa Pricilia Akken Riscindya Syahdi Pramadita CA14-3 (Bond Theory : Price,Presentation, and Retirement ) a. (1) The selling price of bonds is the present value of net cash in the future and discounted at an annual effective rate relationship (yield) by 11 percent.While the present value is the sum of the present value of its maturity amount (face value) plus the present value of the series of future semiannual interest payments. (2) After the bond issue is sold, cash would be increased from the sale of bond issue. And the bonds payable would be presented in the statement of financial position at the face value of the bonds net of the discount. b. The items related to the bond issue would be included in Sealy’s 2011 income statement : Interest expense for 10 months from March 1, 2011- December 31,2011, and interest rate 11%. This consist of 9 percent adjusted for the amortization of the related bond discount. Bond discount should beamortized over the period the bonds will be outstanding, that is,the period from the date of sale (March 1, 2011) to the maturity date (March 1, 2016). c. Yes it would be lower in the second year of the life of the bond issue. The effective-interest method of amortization uses a uniform interest rate
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This note was uploaded on 09/22/2011 for the course ECONOMY 1501208336 taught by Professor Gunawan during the Spring '11 term at Bina Nusantara University.

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Tugas Kelompo1 - T ugas Kelompok week 2 Team 3 : Hediati...

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