In: Accounting
Martin inc issued $15,000,000 of 3%, 10 year bonds at 98%, on January 1st Year 1. Interest is payable semiannually on June 30 and December 31. How much cash did Martin, inc receive on January 1 year 1?
Martin inc issued $15,000,000 of 3%, 10 year bonds at 98%, on January 1st Year 1. Interest is payable semiannually on June 30 and December 31. How much interest will Martin inc pay bondholders on June 30, year 1?
Martin inc issued $15,000,000 of 3%, 10 year bonds at 98%, on January 1st Year 1. Interest is payable semiannually on June 30 and December 31. How much interest will Martin inc pay bondholders over the 10 years?
a | ||
Cash | 15000000*98% | $ 14,700,000 |
b | ||
Payment to bondholders on June 30 Year 1 | 15000000*3%*6/12 | $ 225,000 |
c | ||
Payment of Interest over 10 years | 15000000*3%*6/12*20 semi annual periods | $ 4,500,000 |