A bond was issued on march 1, 2021. The interest dates of the bond are february 1 and august 1. The number of total months of interest expense incurred for the year ended december 31, 2021 should be?

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03-08-2022
Business

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A bond was issued on march 1, 2021. The interest dates of the bond are february 1 and august 1. The number of total months of interest expense incurred for the year ended december 31, 2021 should be?

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-08-16T01:14:18-04:00

A bond was issued on March 1, 2021. The interest dates of the bond are February 1 and August 1. The number of total months of interest expense incurred for the year ended December 31, 2021 should be ten months. As bond is issued on March 1, 2021 so interest month starts from it and till December 31, 2021 ten months interest expense incurred.

Bond is a debt and a loan taken by the company. Bond is a loan from an investors who buy their bonds in which return they get interests from the company as specified in the agreement. Interest can be paid to investors annually or on time which is mentioned in the agreement. Like here interest dates are February 1 and August 1.

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