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LTC Corporation Issued $220,000,6%,10-Year Bonds,with Interest Payable Semiannually at the End

Question 6

Essay

LTC Corporation issued $220,000,6%,10-year bonds,with interest payable semiannually at the end of the period.The market rate on the issue date was 5%.Prepare the entry for issuing the bond.
N = 20
I/Y = 6%/2 = 3%
PMT = $220,000 × 0.05 × ½ = -$6,600
FV = -$220,000
CMPT PV = $237,148.08

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