1. On January 1, 2013, Y. Corp. issued 10% - 5 year bonds with a face of P100,000 atP97,500. Compute the approximate yield to maturity.A bond moturee in 10 v eore The bond'e focevolue ie S1.000 ond poue on opnuel 7 50/roo

Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Answered: 1. On January 1, 2013, Y. Corp. issued…

1. On January 1, 2013, Y. Corp. issued 10% - 5 year bonds with a face of P100,000 at P97,500. Compute the approximate yield to maturity.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, 2012, Instaform Company issued 10% bonds with a principal amount of $50 million, dated January 1. The bonds mature in 2031 (20 years). The market yield for bonds of similar risk and maturity is 12% . Interest is paid semiannually. Required: 1. Determine the price of the bonds on January 1, 2012, and prepare the journal entry to record their issuance by Instaform 2. Assume the market rate was 9%. Determine the price of the bonds on January 1, 2012, and prepare the journal entry to record their issuance by Instaform. 3. Assume Broadcourt Electronics purchased the entire issoe in a private placement of the bonds. Using the data in requirement 2. prepare the journal entry to recced their purchase by Broadcourt .
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Kk.95. Palmer Corp. issued callable bonds with a face value of $200,000 and a coupon rate of 6%. The bond matures in 4 years and pays interest semi-annually. The market rate at time of issuance is 7%. Provide the journal entry to record the issuance of the bonds on January 1st, 2020. -Record the journal entry for the interest expense on 6/30/2021? -What is the net book value of the bonds payable at 12/31/2022? -Palmer Corp. decides to exercise the right to retire its bonds early on 12/31/2022. It calls its bond at a call premium of 3 percent over par. Record the retirement of the bonds.
14.On July 1, 2020, Chikadora Company issued P4M of 16% bonds to yield 14%. Interest is payable semi-annually on January 1 and July 1. The bonds mature in five years. The company uses the calendar year and the effective interest method of amortization.PV of 1 at 7% for 10 periods is P0.50835PV of 1 at 14% for 5 periods is P0.51937PV of an ordinary annuity of 1 at 7% for 10 periods is 7.02359PV of an ordinary annuity of 1 at 14% for 5 periods is 3.43308What is the issue price of the bond? a.)n P3,719,051 b.) P4,000,000 c.) P4,280,949 d.) P4,274,651

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