In: Finance
On January 1, 2018, Luplow Corp issued 5-year bonds with a total face value of $6,000,000 and a stated/contract interest rate of 3%. Interest on the bonds is paid annually on December 31 of each year of the bond’s life. The bonds are issued to provide an effective (market) interest rate of 3.5%
The cash proceeds from issuing the bonds on 1/1/18 is
The amount of interest expense recognized in Luplow’s 2019 income statement is
The bonds carrying value (book value) reported in Luplow’s year-end 12/31/20 balance sheet
The amount of interest expense recognized in Luplow’s 2021 income statement is
What is the total interest expense recognized over the entire life of the bonds?