FA Mod 10: Long-term (non-current) liabilities – homework assignment


FA Mod 10: Long-term (non-current) liabilities – homework assignment

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FA Module 10: Long-term (non-current) liabilities – homework assignment

(The attached PDF file has better formatting.)

Homework assignment:

A firm issues a five year annual coupon 6% bond on December 31, 20X0. The par value is 100, and the yield to maturity on the bond is 5% per annum.

A.    What is the amortization of premium or accrual of discount on this bond in 20X2?
B.    What is the interest expense for 20X2?



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