Final 5 - Stated annual rate of interest b. Effective...

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Question 5 Needs Grading Prescott  Corporation  issued ten  thousand  $1,000 bonds  on January 1,  2011. They  have a ten- year term and  pay interest  semiannually.  A partial bond  amortization  schedule for  the bonds is  as follows: Payment 1 2 3 4 Required Determine the  following with  respect to the  bonds. (Show  all calculations  for partial  credit review.) a.
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Unformatted text preview: Stated annual rate of interest b. Effective annual rate of interest c. Interest expense on the bonds in 2012 d. Carrying value of the bonds as of December 31, 2012 e. Total interest expense recognized for the bond issue over its full term Problem #5: a. 8% b. 6% c. $680,759 d. $11,256,109 e. $6,512,253...
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Final 5 - Stated annual rate of interest b. Effective...

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