1 Scuppers Boat Works, Inc. issued 200 bonds to finance expansion into a new line of designs. The bonds had a total prin

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1 Scuppers Boat Works Inc Issued 200 Bonds To Finance Expansion Into A New Line Of Designs The Bonds Had A Total Prin 1 (33.22 KiB) Viewed 4 times

1 Scuppers Boat Works Inc Issued 200 Bonds To Finance Expansion Into A New Line Of Designs The Bonds Had A Total Prin 2 (31.16 KiB) Viewed 4 times

1 Scuppers Boat Works Inc Issued 200 Bonds To Finance Expansion Into A New Line Of Designs The Bonds Had A Total Prin 3 (12.1 KiB) Viewed 4 times

1 Scuppers Boat Works Inc Issued 200 Bonds To Finance Expansion Into A New Line Of Designs The Bonds Had A Total Prin 4 (13.54 KiB) Viewed 4 times

1 Scuppers Boat Works Inc Issued 200 Bonds To Finance Expansion Into A New Line Of Designs The Bonds Had A Total Prin 5 (24.11 KiB) Viewed 4 times

1 Scuppers Boat Works Inc Issued 200 Bonds To Finance Expansion Into A New Line Of Designs The Bonds Had A Total Prin 6 (38.76 KiB) Viewed 4 times

1 Scuppers Boat Works, Inc. issued 200 bonds to finance expansion into a new line of designs. The bonds had a total principal of $200,000. They would pay interest annually on December 31 at a rate of 9% per annum and will mature in five years. On the day the bonds were issued, January 1, 2018, similar securities were yielding a rate of 10% per annum. Scuppers' underwriter, Reedham and Ouip, purchased the entire issue to resell them to individual investors. Scuppers retained the right to buy back the bonds from the bondholders in two years at a price of $102. The bondholders may at any time trade in their bonds for common shares of Scuppers, Inc. at a rate of 50 common shares for each bond. The bondholders will be paid $ every stated rate of interest on the bonds is. Multiple Choice O 9% $18,000 year O9%: $18,000; at maturity O 9%: $18,000; six months 10%: $20,000 year
2 Scuppers Boat Works, Inc. issued 200 bonds to finance expansion into a new line of designs. The bonds had a total principal of $200,000. They would pay interest annually on December 31 at a rate of 9% per annum and will mature in five years. On the day the bonds were issued, January 1, 2019, similar securities were yielding a rate of 10% per annum. Scuppers' underwriter, Reedham and Ouip, purchased the entire issue to resell them to individual investors. Scuppers retained the right to buy back the bonds from the bondholders in two years at a price of $102. The bondholders may at any time trade in their bonds for common shares of Scuppers, Inc. at a rate of 50 common shares for each bond. The par value of the bond issue is Multiple Choice $200,000.00 $102,000.00 $18,000.00 $20,000.00
Straight-line amortization of discount or premium is simpler, but the effective-interest method is the theoretically preferred method. True or False True False
An independent trustee is appointed in a bond issue to control the money raised and the payment of interest and principal. True or False True False
An 8% instalment note of $60,000, dated January 2, requires 6 annual instalments of $12,979, which include interest. Calculate the amount of the second instalment that should be charged to interest expense. Multiple Choice $3,762 $4,800 $4,346 O $4,416
Scuppers Boat Works, Inc. issued 200 bonds to finance expansion into a new line of designs. The bonds had a total principal of $200,000. They would pay interest annually on December 31 at a rate of 9% per annum and will mature in five years. On the day the bonds were issued. January 1, 2019, similar securities were yielding a rate of 10% per annum. Scuppers' underwriter, Reedham and Ouip, purchased the entire issue to resell them to individual investors. Scuppers retained the right to buy back the bonds from the bondholders in two years at a price of $102. The bondholders may at any time trade in their bonds for common shares of Scuppers, Inc. at a rate of 50 common shares for each bond. The 10% rate for similar securities on the date of issue is known as the Multiple Choice coupon rate. stated rate. par rate. market rate.