On January 1, 2007, the Queen Corporation issued 6% bonds with a face value of $54,000. The bonds are sold for $52,380. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2011. Queen records straight-line amortization of the bond discount. Determine the bond interest expense for the year ended December 31, 2007.
Select the correct answer.
$1,620
$3,240
$3,564
$270
When the market rate of interest was 12%, Newman Corporation issued $312,000, 11%, four-year bonds that pay interest semiannually. Determine the selling price of this bond issue. Use the present value tables below.
Present Value of $1
to Be Paid in the Future
Present Value of a Series of $1 Payments
to Be Paid in the Future
Periods
5.0%
5.5%
6.0%
6.5%
1$0.952381
$0.947867
$0.943396
$0.938967
2$0.907029
$0.898452
$0.889996
$0.881659
3$0.863838
$0.851614
$0.839619
$0.827849
4$0.822702
$0.807217
$0.792094
$0.777323
5$0.783526
$0.765134
$0.747258
$0.729881
6$0.746215
$0.725246
$0.704961
$0.685334
7$0.710681
$0.687437
$0.665057
$0.643506
8$0.676839
$0.651599
$0.627412
$0.604231
9$0.644609
$0.617629
$0.591898
$0.567353
10$0.613913
$0.585431
$0.558395
$0.532726
Periods
11.0%
11.5%
12.0%
12.5%
1$0.900901
$0.896861
$0.892857
$0.888889
2$0.811622
$0.804360
$0.797194
$0.790123
3$0.731191
$0.721399
$0.711780
$0.702332
4$0.658731
$0.646994
$0.635518
$0.624295
5$0.593451
$0.580264
$0.567427
$0.554929
6$0.534641
$0.520416
$0.506631
$0.493270
7$0.481658
$0.466741
$0.452349
$0.438462
8$0.433926
$0.418602
$0.403883
$0.389744
9$0.390925
$0.375428
$0.360610
$0.346439
10$0.352184
$0.336706
$0.321973
$0.307946
Periods
5%
5.5%
6%
6.5%
1$0.952381
$0.947867
$0.943396
$0.938967
2$1.859410
$1.846320
$1.833393
$1.820626
3$2.723248
$2.697933
$2.673012
$2.648476
4$3.545951
$3.505150
$3.465106
$3.425799
5$4.329477
$4.270284
$4.212364
$4.155679
6$5.075692
$4.995530
$4.917324
$4.841014
7$5.786373
$5.682967
$5.582381
$5.484520
8$6.463213
$6.334566
$6.209794
$6.088751
9$7.107822
$6.952195
$6.801692
$6.656104
10$7.721735
$7.537626
$7.360087
$7.188830
Periods
11%
11.5%
12%
12.5%
1$0.900901
$0.896861
$0.892857
$0.888889
2$1.712523
$1.701221
$1.690051
$1.679012
3$2.443715
$2.422619
$2.401831
$2.381344
4$3.102446
$3.069614
$3.037349
$3.005639
5$3.695897
$3.649878
$3.604776
$3.560568
6$4.230538
$4.170294
$4.111407
$4.053839
7$4.712196
$4.637035
$4.563757
$4.492301
8$5.146123
$5.055637
$4.967640
$4.882045
9$5.537048
$5.431064
$5.328250
$5.228485
10$5.889232
$5.767771
$5.650223
$5.536431
Select the correct answer.
$250,956
$255,745
$302,313
$312,000