Ask Question
6 August, 19:04

On january 1, 2017, $5,000,000, 10-year, 8% bonds were issued at $5,150,000. interest is paid each january 1 and july 1. the straight-line method of amortization is used to amortize the premium. how much is the semiannual amortization?

+4
Answers (1)
  1. 6 August, 21:07
    0
    The bonds were issued at $5,150,000 with a face value of $5,000,000, so the premium is $150,000. These are ten year bonds, so that amortization period is 10 years. The annual amortization of the premium is 15,000. The semiannual amortization is $7,500.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On january 1, 2017, $5,000,000, 10-year, 8% bonds were issued at $5,150,000. interest is paid each january 1 and july 1. the straight-line ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers