On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds that mature on December 31, 2021. WWI will pay interest semiannually on June 30 and December 31. On the date WWI issued the bonds, the market rate of interest was 1096. The company's fiscal year ends on December 31. What is the issue price of this bond?

On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds that mature on December 31, 2021. WWI will pay interest semiannually on June 30 and December 31. On the date WWI issued the bonds, the market rate of interest was 1096. The company's fiscal year ends on December 31. What is the issue price of this bond?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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