On January 1, 2021, Bishop Company issued 10% bonds dated January 1, 2021, with a face amount of $19.0 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31.

Required:

1. Determine the price of the bonds at January 1, 2021.

2. Prepare the journal entry to record their issuance by The Bradford Company on January 1, 2021.

3. Prepare the journal entry to record interest on June 30, 2021 (at the effective rate).

4. Prepare the journal entry to record interest on December 31, 2021 (at the effective rate).

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan

What part of the rational model of decision-making does the former business executive “elliott” have a problem completing?

Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is: