Target Company issues bonds with a par value of $950,000 on their stated issue date. The bonds mature in 15 years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 12%.
What is the amount of each semiannual interest payment for these bonds? (Omit the "$" sign in your response.)
Semiannual cash interest payment $
How many semiannual interest payments will be made on these bonds over their life?
Number of Payments
Use the interest rates given to determine whether the bonds are issued at
Compute the price of the bonds as of their issue date. Use the present value Table B.1 and Table B.3. (Round your answers to the nearest dollar amount. Round your table value to 4 decimal places. Omit the "$" sign in your response.)
Cash Flow Amount Table Value Present Value
Par (maturity) value $ $
Price of bonds
Prepare the journal entry to record the bonds’ issuance. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
General Journal Debit Credit