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What is the amount charged to bonds payable

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Problem - The Longhorn Company has issued bonds with a stated rate of interest of 5% that pay interest on June 30th and December 31st each year. The bonds were issued for $5,858,431. The bonds have a principal amount of $5,000,000 and mature in 10 years. The bonds were issued on January 1st of the current year. The market rate of interest when the bonds were issued was 3%. The market rate of interest today is 7%. When the first interest payment is made on June 30th, what is the amount charged to Bonds Payable?

Reference no: EM132456759

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