Problem Algo Determining the price of bonds; discount and premium; issuer and investor LO
On January Instaform, Incorporated, issued bonds with a face amount of $ million, dated January
The bonds mature in years
The market yield for bonds of similar risk and maturity is
Interest is paid semiannually.
Required:
a Determine the price of the bonds at January
b Prepare the journal entry to record their issuance by Instaform.
a Assume the market rate was Determine the price of the bonds at January
b Assume the market rate was Prepare the journal entry to record their issuance by Instaform.
Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement prepare the journal entry to record the purchase by Broadcourt.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Complete this question by entering your answers in the tabs below.
Req A
Req
Req
Determine the price of the bonds at January
Note: Enter your answer in whole dollars.
Price of the bonds
