For each of the following situations, calculate the amount of bond discount or p
ID: 2419543 • Letter: F
Question
For each of the following situations, calculate the amount of bond discount or premium, if any. (Round your answers to the nearest whole dollar amount.)
For each of the following situations, calculate the amount of bond discount or premium, if any. (Round your answers to the nearest whole dollar amount.)
Situations Amount Discount or Premiunm a. Wolfe Co. issued $58,000 of 6 percent bonds at 101 b. Riley, Inc, issued $91,000 of 10-year, 8 percent bonds at 97 c Rais, Inc., issued $243,000 of 15-year, 9 percent bonds at 101%. d. Beaux Co. issued $172,000 of 20-year, 8 percent bonds at 96%,Explanation / Answer
Situation Amount Discount or premium Wolfe Co issued $ 58000 of 6% percent bond at 101 574 Premium (58000/101)* (101-100) Riley , Inc. issued $ 91000 of 10 years , 8% bond at 97 2,814 Discount (91000/97)*(97-100) Rais, Inc. issued $243000 of 15 years 9% bond at 101 1/4 3,000 Premium (243000/101.25)*(101.25-100) Beaux co issued $ 172000 of 20 years , 8% bond at 96 3/4 5,778 Discount (172000/96.75)*(96.75-100)
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