Issuance of bonds-payment of interest
Problem: Prepare entries to record issuance of bonds, payment of interest, and amortization of bond discount using effective interest method.
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Prepare entries to record issuance of bonds, payment of interest, and amortization of bond discount using effective interest method.
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In the spot market, 1 U.S. dollar can be exchanged for 121 Japanese yen. In the 1-year forward market, 1 U.S. dollar can be exchanged for 125 Japanese yen. The 1-year, risk-free rate of interest is 5.2 percent in the United States. If interest rat
a. What is the bond’s price today? b. What will the bond’s price be in six months after the next coupon is paid? c. What is the total (six month) return on this bond?
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