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
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发表于 2007-11-5 18:50
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