25 A municipality issues bonds to fund a new school capital improvement project. The municipality wants to manage its cash flow and therefore needs the bonds to mature over a period of many years. Which type of bonds should be issued? Coupon Term Serial Unsecured 0000

A-1

Problem 4:03 (Algorithmic) The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenueproducing investments together with annual rates of return are as follows: Type of Loan/Investment Annual Rate of Return (%) Automobile loans 8 Furniture loans Other secured loans Signature loans Risk-free securities The credit union will have $1.4 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments. . 10 11 . Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). • Furniture loans plus other secured loans may not exc…

Take Home Portion Wishful Thinking (WT) School of Management is building a new facility on a piece of donated land. It received a generous cash donation from a local business to support the project, and now needs to borrow additional $10,000,000 to complete the project. Therefore WT School of Mgmt issued $10,000,000 of 6.00% 10-year bonds. These bonds were issued on January 1, 20X1, and pay interest annually on each January 1. The bonds yield 7.00%. WT School of Mgmt incurred $600,000 in bond issue costs related to the bond sale (round up the calculation to the nearest dollar). (a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 20X1 THE (b) Prepare a bond amortization schedule up to and including January 1, 20X5, using the effective interest method ( Date Jan 1, X1 Interest Paid Interest Expense Disc/Prem Amortization Bond Carrying Value Jan 1, X2 Jan 1, X3 Jan 1, X4 Jan 1, X5 2 (c) Assume that on July 1, 20X4, WT…

A city borrows $ 1 million, paying semi-annual interest at j2 = 9%. The city creates a sinking fund in which semi-annual deposits of $37360.93 are made in order to accumulate the $ 1 million needed to repay the loan upon maturity. The sinking fund earns j2 = 8%.What is the book value of the debt at the end of the 5 years?

Part 1 A state establishes a sinking fund of $300 million for bonds that will mature in 20 years. How much money (in dollars) must be deposited at the end of each month into an account that earns an annual interest rate of 2% combounded monthly to retire the $300-million bond debt? (Round your answer to the nearest cent.) Part 2 The winner of a lottery chooses to receive annual payments of $180,000 at the end of each year for 25 years. If the current interest rate is 5.9%, find the present value (in dollars) of the payments (Round your answer to the nearest cent.)

Government Grants (PAS 20) Problem 1. On January 1, 2015, SMDC Inc. was granted a non-interest bearing loan from Bangko Sentral ng Pilipinas with a face value of P1,000,000, term of 3 years and implicit rate of 10%. SMDC received the face value of the loan on the condition that the company will continuously operate for the 3-year term of the loan. Required: Based on the result of your audit, determine the following: __________1. Realized income from government grant for the year ended December 31, 2015 __________2. Book value of deferred income from government grant as of December 31, 2015   Problem 2. On January 1, 2021, ALI Inc. received P2,000,000 from national government on the condition that the company will construct an environmentally-friendly building with a cost of P13,000,000 and useful life of 10 years and residual value of P1,000,000. On January 1, 2023, the government grant became repayable as a result of ALI Inc.’s failure to comply with the environmentally-friendly…

Student Loans The balance of federal direct studentloans, S(t), in $ billions, for selected years from 2011 andprojected to 2023 can be modeled by S = 130.7t +699.7, with t equal to the number of years after 2011 and S equal to the balance, in billions of dollars.a. What is the slope of the graph of this function?b. Interpret the slope in the context of this problem.

Finance

Need help on three and four with full work