Calculate how much the bond will be worth when it is issued

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Reference no: EM132751081

Question - January 1, 2019 PT ACBD issued a 5-year bond amounting to IDR 5 million, 10 percent interest that is paid semi-annually (every 6 months). Bonds are issued at a premium because the market interest rate is 8 percent.

Required -

1. Calculate how much the bond will be worth when it is issued?

2. Keep a journal on 1 January 2019; 1 Jul 2019; 31 December 2019; and at the time of repayment.

3. Make a complete amortization table if the amortization is straight line.

Reference no: EM132751081

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