acct 1a financial accounting ch 10 13 495858

On January 1, 2011, Kidman Enterprises issues bonds that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.

1.

How much interest will Kidman pay (in cash) to the bondholders every six months (Do not round intermediate calculations. Omit the “$” sign in your response.)

2. On January 1, 2011, Kidman Enterprises issues bonds that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.

1.

How much interest will Kidman pay (in cash) to the bondholders every six months (Do not round intermediate calculations. Omit the “$” sign in your response.)

3. Moss issues bonds with a par value of $90,000 on January 1, 2011. The bonds annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $85,431.

1.

What is the amount of the discount on these bonds at issuance (Omit the “$” sign in your response.)