Homework answers / question archive / -mework Saved Help Save & Exit Submit Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company

-mework Saved Help Save & Exit Submit Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company

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-mework Saved Help Save & Exit Submit Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. a. Interest on bonds is tax deductible b. Large payments of par value are made at maturity. c. Bonds have no ownership rights. d. An organization earns a lower return with borrowed funds than it pays in interest. e. Bonds increase return on equity if the company earns a higher return with borrowed funds than it pays in interest. f. Requires payments of both periodic interest and par value at maturity

Homework Saved Help Save & Exit Submit On January 1, Boston Enterprises issues bonds that have a $1,800,000 par value, mature in 20 years, and pay 8% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? Semiannual Semiannual Cash Par (maturity) Value Rate Interest Payment < Required 1 Required 2 >