2. Determine the purchase price and the amount of premium/discount of the given bonds.Face Value Coupon Rate Yield Rate Redemption DatePurchase DatePurchase Price?a.$1000.005.25% 5.25%January 01, 2024January 01, 2019b. $5000.004.75%6.75%October 20, 2028October 20, 2018?c. $10,000.00 7.85%4.15%August 16, 2034August 16, 2014?Amount ofPremium/Discount???

Bonds are debt instruments issued by companies. Bonds pay periodic coupons to the holders of the…

2. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date January 01, 2019 Purchase Price ? a. $1000.00 January 01, 2024 5.25% 5.25% 6.75% b. $5000.00 4.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?

2. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date January 01, 2019 Purchase Price ? a. $1000.00 January 01, 2024 5.25% 5.25% 6.75% b. $5000.00 4.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?

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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A comapny has issued a $162, 000, 3 year, zero interest bond dated January 1, 2023. The market interest rate for similar bonds was 11%. Assume the company used the effective interest method of amortization. Prepare a schedule of bond discount/premium amortization. (Round answers to 0 decimal places, e. g. 5, 275. Do not leave any answer field blank. Enter 0 for amounts.)
Please do not give solution in image format ? And Fast answering please and explain proper steps by Step.
Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Par Value Bond Rate Payable Semi - Annually Time Before Maturity Yield Rate Conversion Period $7 comma 000 6.5% 8.5 years 7.25% semi dash annually Question content area bottom Part 1 The purchase price of the bond is $ enter your response here. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
D ook You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Estimated $ Volume Company (Ticker) Coupon Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) 5.700 7.150 ?? Maturity January 15, 2037 January 15, 2031 January 15, 2033 Last Price Last Yield 94.219 ?? (000s) ?? 57,365 6.08 48,944 94.765 6.90 43,805 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. nt Coupon rate ences %
The business plans to invest a further $15 million in machinery and equipment and is considering two possible financing options. The first option is to make a one-for-four rights issue. The current market price per share is $2.00 and the rights shares would be issued at a discount of 25% on this market price. The second option is to take a further loan that will have an initial annual rate of interest of 10%. This is a variable rate and, while interest rates have been stable for a number of years, there has been recent speculation that interest rates will begin to rise in the near future. The outcome of the expansion is not certain. The management team involved in developing and implementing the expansion plans has provided three possible outcomes concerning earnings before interest and taxes for the following year: Change in earnings before interest and taxes from previous year Optimistic 30% Most likely 10% Pessimistic 20% The dividend per share for the forthcoming year is expected…
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BOND PRICING #1 for Debt Financing Company Debt Financing Company (DFC) issues a bond on January 1, 2021 with a face value of $2,000,000. The bond has a 15 year maturity date and requires SEMI ANNUAL interest payments. The bond's stated interest rate is 3% and the current market interest rate is 4%. Hint: remember to set your expectations PV tables will be needed. Do not round your PVIF, but round answers to whole dollars. Required: Prepare the journal entry (in proper form) at issuance of this bond for DFC. Include your journal for grading on your PDF upload. Your multiple step calculations must also be shown . . To get a preliminary idea of how you did you may enter your calculated amount for cash received at issuance
Interpreting Bond Footnote Disclosures and Computing Effective Interest Rate In 2019, French grocery retailer Carrefour issued bonds as follows. Issue date Issue amount (€M) Annual coupon rate Maturity Issue price May 7, 2019 500 1% May 17, 2027 99.534 a. Determine the annual interest payments. € 5 million b. Determine the effective interest rate. Note: Round percentage to three decimal places (for example, enter 6.656% for 6.6555%). 1.061 % c. What amount of interest expense does the company report related to these bonds for the fiscal year ended December 31, 2019? Note: Round your answers (in millions) to two decimal places. € 3.45 ☑ million
aj.4
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Time Coupon Market Accrued Commission Bonds Total Company Since Last Rate Price Interest per Bond Purchased Price Interest Company 1 8.25 102.50 78 days $ 26.81 $3.50 15 $ 1,537.50

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