Acompany issues $253, 7.8%, 20-year bonds to yield 8.0% on january 1, year 17. interest is paid on june 30 and december 31. the proceeds from the bonds are $24799240. using effective-interest amortization, what will the carrying value of the bonds be on the december 31, year 17 balance sheet?

Ans. The carrying value of this bond on Dec. 31/17 is $25,185,800.90

Explanation:

Hi, the carrying value of this debt depends on the unpaid coupons and its principal, and since 2 semi-annual coupons were already paid, we have to bring to present value (to Dec /17) the remaining coupons and the principal to be paid. The formula is as follows.

Where:

Best of luck.

correct, but each time you dont pay the price of the penalty can increase.

answer; charters;