On Jan. 1, 20x1, Yngwei Co. purchased 6,000,000, 10% bonds issued by Malsteen, Inc. for 5,116,292. The bonds together with compounded interest are due on Dec. 31, 20x3. What is the effective interest rate on the bonds and how much is the carrying amount of the investment on Dec. 31, 20x2? a. 18% ; 7,897,017.       c. 16% ; 6,884,483 b. 16% ; 5,624,483.       d. 8%; 4,928,774

If $4,000,000 of 12% bonds are issued at 103 1/4, the amount of cash received from the sale is:

If bonds are issued at 103, this means that: The bond rate of interest is 10.3% of the market rate of interest. B) A $2,000 bond sold for $2,060.00. OA) OC) A $1,000 bond sold for $103. ○ D) The bonds sold at a discount.

Shaw Company issued P5,000,000, 12% bonds on January 1, 2012. The principal of the bonds were paid in series of P1,000,000 annually, together with any accrued interest on the outstanding bonds each December 31, starting December 31, 2012. The prevailing market rate at the time of issuance was 10%. How much is the issuance price of the bonds?    Using the information in Problem 4, how much is the interest payment on December 31, 2016?   Using the information in Problem 4, how much is the premium amortization on December 31, 2016?