Pembrooke Corporation issued 15-year $500,000 6% semi-annual bonds five years ago at an effective interest rate of 8%.Coupon payment dates are April 1, and October 1.Interest rates have fallen, so Pembrooke can retire the bonds on October 1, 2015, for $500,000.The last coupon was paid on April 1, 2015, and after that the balance in the bond discount account was $67,952.
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The Answer of Pembrooke Corporation issued 15-year $500,000 6% semi-annual bonds five years ago at an effective interest rate of 8%.Coupon payment dates are April 1, and October 1.Interest rates have fallen, so Pembrooke can retire the bonds on October 1, 2015, for $500,000.The last coupon was paid on April 1, 2015, and after that the balance in the bond discount account was $67,952.
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Pembrooke Corporation Issued 15-Year $500,000 6% Semi-Annual Bonds Five Years