Business
Business, 14.04.2020 18:28, zahraalshagawa02

A company issues $100,000 of 5%, 10-year bonds dated January 1, 2010. The bonds pay interest semiannually on June 30 and December 31 each year. If the bonds are sold at par value, the issuer records the sale with a Debit to Cash for $100,000 and a Credit to Bonds Payable for $100,000.
Premium: contract rate is greater than the market rate
Discount: contract rate is less than the market rate
Par: contract rate is equal to the market rate
An installment note is an obligation requiring a series of payments to the lenders.

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A company issues $100,000 of 5%, 10-year bonds dated January 1, 2010. The bonds pay interest semiann...

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