On october 1 2009 jack company issued a 5000 6 bond payable, Ask an Expert

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On October 1, 2009, Jack Company issued a $5,000, 6%, bond payable. The interest is payable annually each October 1 and the bond matures in five years. The annual accounting period for the company ends December 31. Complete the chart and at the bottom, indicate if the bond sold at part or for a premium or discount

BOND CHART

Market interest rate 4% 6% 8%
PV of the Interest Payments
PV of the Maturity Value
PV Issue price of the bonds

Bond sold at par, discount or premium.Which scenario above is best for the company and why?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9974415

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