Q24. A company issued a $1,000 face value frond on 1 January. The annual coupon rate on the bond is 9 percent, interest is paid semiannually, and the bond matt= is five years, The market rate of interest when the bond was 10 percent on an annual basis. The amount of the initial liability recorded and the interest expense recorded on the first coupon payment date, respectively, where closest to:

           Amount of the                        Interest expense recorded on

initial liability recorded                  the first coupon payment date

A．          $961                                          $48

B．          $961                                          $50

C．          $1,000                                         $50

D．          $1,000                                         $50

答案和详解如下：

Q24. A    07 Modular level I, Vol 3, PP.510-514

The liability and interest expense recorded are both based on market of interest when the bond was issued and not the coupon rate an the bond. The market value of the bond at issuance was $961.39. Interest expense is the market rate at date of issuance multiplied by balance of the liability:

($961.39)(0.05)=$48.07

a

a

B

第一次来，第一个回复

看下跟自己算的一样不