Why would a company issue bonds that require interest payments if bonds that do not require interest payments are being sold in the open market?
2.If the company were to issue 10-year bonds with a face value of $ 100,000 and the market rate of interest is 10%, what would be the proceeds from the sale if the bonds were zero- interest bonds? What would be the proceeds if the annual interest payments did not begin for five years and the stated rate of interest were 10%? What would be the proceeds if the bonds paid interest annually for 10 years at 10%?
3.What factors must a business consider when determining the interest terms associated with long- term debt?
As the chief accounting officer in the company, you have been asked to draft a memo to the board of directors recommending either the cost method or the par value method of accounting for treasury stock. Your memo should address issues such as the prevailing practice, the likely effect on the financial statements (particularly the Equity section), and the potential impact of the treasury stock accounting treatment on the ability to maintain steady cash dividend payments in the future.
Your well-written paper must be 2-3 pages, in addition to title and reference pages. The paper should be formatted according to the CSU-Global Guide to Writing and APA Requirements. Any supporting calculations should be inserted in a table in your Word document. Do not submit two separate documents, as only one