Homework Quiz—12 S11 Section 2

Homework Quiz—12 S11 Section 2 - S11...

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S11 Homework Quiz— 12 Section 2 Name Section At 12/1/08 ABC Company purchased bonds for which it prepared the following bond asset table. Date Interest Revenue Cash Flow Change in Carrying Amount Carrying Amount 954,016  6/1/09 27,666  32,400  (4,734) 949,282  12/1/09 27,529  32,400  (4,871) 944,412  6/1/10 27,388  32,400  (5,012) 939,400  12/1/10 27,243  32,400  (5,157) 934,242  6/1/11 27,093  32,400  (5,307) 928,935  12/1/11 26,939  32,400  (5,461) 923,474  6/1/12 26,781  32,400  (5,619) 917,855  12/1/12 26,618  32,400  (5,782) 912,073  6/1/13 26,450  32,400  (5,950) 906,123  12/1/13 26,278  932,400  (906,122) The bonds were purchased for $954,016 and are classified in the “Hold to Maturity” category. Required : 1. What is the bond’s face interest rate? 2. What is the bond’s effective or market interest rate? 3. What was the bond’s 2010 interest revenue? 4.
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Homework Quiz—12 S11 Section 2 - S11...

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