Question: citywide company issues bonds with a par value of 82000...
Citywide Company issues bonds with a par value of $82,000 on
their stated issue date. The bonds mature in ten years and pay 8%
annual interest in semiannual payments. On the issue date, the
annual market rate for the bonds is 6%. (Table B.1, Table B.2,
Table B.3, and Table B.4) (Use appropriate factor(s) from
the tables provided.)
1. What is the amount of each semiannual interest payment for these bonds?
2. How many semiannual interest payments will be made on these bonds over their life?
3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium.
4. Compute the price of the bonds as of their issue date.
5. Prepare the journal entry to record the bonds’ issuance.
Please Answer questions 4 & 5. I have the first part (1-3) completed and correct, as follows:
1: 82,000 X 4.0%
3: Bond is to be issued at a premium . Because coupon rate us higher than the market interest rate
4: Table values are based on
5: Prepare the journal entry to record the bonds’ issuance : create a journal entry
This is an example to populate answers for #4( sections in bold are what I need help with:
|Table Values are based on:|
|Cash Flow||Table Values||*, / ,+, or -||Amount||Present Value|
|Par (maturity) Value|
|Price of Bonds||$|