Q25. Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise notes. A company issued a $1,000 face value bond on 1 January. The annual coupon rate on the bond is 10 percent, interest is paid semiannually, and the bond matures in five years. The market rate of interest when the bond was issued was 9 percent on an annual basis. The amount of the initially liability recorded and the interest expense recorded on the first coupon payment date, respectively, were closest to:
| Amount of the initial liability recorded | Interest expense recorded on the first coupon payment date | A | $1,000 | $47 | B | $1,000 | $50 | C | $1,040 | $47 | D | $1,040 | $50 |
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发表于 2007-10-24 19:16
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