Question: 1. On December 31, 2010, a company issues 16%, 10-year bonds with a par value of $100,000. Interest is paid on June 30 and December 31. The bonds are sold to yield a 14% annual market rate at an issue price of $110,592. How are these bonds reported in the long-term liability section of the issuer's balance sheet as of December 31, 2011?
2. How do you compute the amount of interest a bond issuer pays in cash each year?
3. What is the main difference between notes payable and bonds payable?