contestada

Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity:
Date Cash Paid Interest
Expense Increase in
Carrying Value Carrying
Value
01/01/2021 332,789
06/30/2021 17,500 19,967 2,467 335,256
12/31/2021 17,500 20,115 2,615 337,871
06/30/2022 17,500 20,272 2,772 340,643
12/31/2022 17,500 20,439 2,939 343,582
06/30/2023 17,500 20,615 3,115 346,697
12/31/2023 17,500 20,803 3,303 350,000
THA issued the bonds for:_____________
a) $350,000.
b) $332,789.
c) $455,000.
d) Cannot be determined from the given information.

Respuesta :

THA issued the bond for $332,789 on the basis of amortization schedule from issuance until maturity given. Bonds are fixed-income securities that reflect loans from investors to borrowers (corporate or governmental).

A bond can be compared to an agreement outlining terms of  loan and the associated payments between lender and borrower. The length of time until a bond matures determines how long its owner will continue to receive interest payments. The bond's face value, or par, is returned to the owner when it matures. Maturity of bond plays a significant role in determining how sensitive it is to interest rates.

To learn more about bond, click more

https://brainly.com/question/9970004

#SPJ1

Otras preguntas