Shakey_101
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- Oct 17, 2012
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Brace Ltd issued five-year debentures (bonds) with a face value of $1 million and a contract rate of interest of 10% per annum. The amount received from the issue was $926,405, ensuring an effective rate of interest of 12% per annum. Interest is payable semi-annually on 30 September and 31 March.
Determine the total bond interest expense to be recognized over the bonds' life.
Please explain the answer so that I can see how it's done.
Thanks
Determine the total bond interest expense to be recognized over the bonds' life.
Please explain the answer so that I can see how it's done.
Thanks