Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 29

Determining bond prices
Bond prices depend on the market rate of interest, stated rate of interest, and time.
Requirement
1. Determine whether the following bonds payable will be issued at maturity value, at a premium, or at a discount:
a. The market interest rate is 6%. Boise, Corp., issues bonds payable with a stated rate of 5 3/4%.
b. Dallas, Inc., issued 8% bonds payable when the market rate was 7 1/4%.
c. Cleveland Corporation issued 7% bonds when the market interest rate was 7%.
d. Atlanta Company issued bonds payable that pay stated interest of 7 1/2%. At issuance, the market interest rate was 9 1/4%.