Compute the effective yield rate on each issuance


SPA company sold $800,000 of 11% face value bonds for $761,150.96 on June 30, 2000. On December 31, 2000 SPA sold $700,000 of this same bond issue for $734,645.28. The bonds were dated January 1, 2000, pay interest semiannually on each December 31 and June 30, and are due December 31, 2007.

Compute the effective yield rate on each issuance of SPA Company 11% bonds.

 

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Accounting Basics: Compute the effective yield rate on each issuance
Reference No:- TGS083432

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