Prepare entries to record issuance of bonds, payment of interest, and amortization of
bond discount using effective interest method.
This solution illustrates how to prepare entries for bond transactions.
You have been asked to write a training document about the US Bond Market for use in the new employee training program. In your document, you must make sure to address each of the following:
1. the key players in the market; and the types of investments available to both individual investors and institutional investors,
2. the way transactions are carried out, and
3. the relation, if any, between the bond markets and the stock markets.