Posted: 17 Apr 2009 at 05:06 | IP Logged
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They are giving so much information to confuse people...The market value of the bond is a distractor.
The unamortized premium of 350,000 relates to the issuance of 5,000,000, so if we want to calculate the premium on the 1,500,000 we have to apply the rule of thumb: 350,000/5,000,000*1,500,000. Hope that helps :)
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