Proiblem
Jester Company issues bonds with a par value of $600,000 on their stated issue date. The bonds mature in 10 years and pay 6% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 8%. (Use Table 1, Table 3)
1. What is the amount of each semiannual interest payment for these bonds? (Omit the "tiny_mce_markerquot; sign in your response.)
2. How many semiannual interest payments will be made on these bonds over their life?
3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium.
4. Compute the price of the bonds as of their issue date. (Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.)
5. Prepare the journal entry to record the bonds' issuance. (Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answers to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.)
Attachment:- Table-1-and-3.rar