snl 3.Union Local School District has bonds outstanding with a coupon rate of 3.7 percent paidsemiannually and 16 years to maturity. The yield to maturity on these bonds is 3.9 percentand the bonds have a par value of $5,000. What is the dollar price of the bond?1/1/20001/1/20163.70%21003.90%$5,00045567Settlement dateMaturity date8Coupon rateэCoupons per year0Redemption value (% of par)1Yield to maturity2Par value345Complete the following analysis. Do not hard code values in your calculations. Leavethe "Basis" input blank in the function. You must use the built-in Excel function toanswer this question.67Dollar price8

The problem requires the determination of the price of the bond.The problem involves the valuation…

Answered: 3. Union Local School District has…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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Saved iz G Union Local School District has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 21 years to maturity. The yield to maturity on these bonds is 3.5 percent and the bonds have a par value of $5,000. What is the price of the bonds? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) HR 4.778.24
Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Kingbird followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places eg. 58,971.) Proceeds from sale of bond on bond Date $ Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…
Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Kingbird followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places e.g. 58,971.) Proceeds from sale of bond on bond Prepare the journal entries for above transactions. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…
Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.
1. On January 1, 2024, Lansing Group issued $1,000,000 of 6% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in five years. The market yield for bonds of similar risk and maturity is 8%. INSTRUCTIONS: 1. Determine the price of these bonds that are issued to yield the 8% market rate using the Time Value of Money Tables. Include the table and relevant components for each factor used. 2. Record the issuance of these bonds by Lansing Group. 3. Prepare an amortization schedule that determines interest at the effective rate through the maturity date of the bonds. 4. Prepare the entries to record the interest on June 30, 2024, and December 31, 2024. 5. Assume that Lansing Group retires the bonds on January 1, 2026, paying $1,027,544. Prepare the entry to record the retirement.
Review the Bond Table below, all bonds have semi-annual payments. Security Coupon Rate Face Value Price 1-yr Treasury 0.00% $1,000 $965.90 5-yr Treasury 4.50% $1,000 $ 991.18 10 yr Treasury 5.00% $1,000 $ 976.94 5 yr Corporate 4.80% $1,000 $ 912.46 ( rated A) 10-year Corporate 8.40% $1,000 $1,044.66 (rated BBB) What price should you pay for a Corporate Bond with semi-annual payments, a 5 year maturity, a Default Rating of BBB, a Face Value of $1,000 and a coupon rate of 7.20%?
Please find 1) Interest expense 2) cash paid 3) bonds payable Required information P10-6 (Algo) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below.] PowerTap Utilities is planning to issue bonds with a face value of $2,100,000 and a coupon rate of 9 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (FV of $1, PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-6 Part 1 Required: 1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Issue price $ 2,100,000
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MCQ: Legacy Inc. recently issued bonds that mature in 10 years. They have a par value of $1,000 and annual coupon of 6%. The current market interest rate is 8.5%. Assume that the bonds can be recalled at end of year 5 at $1,250. What will be the price of bonds? Select one: a. 833.82 b. 1067.75 c. 1130.95 d. 835.97 e. 582.73
Union local school district has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 23 years to maturity. The yield to maturity on these bonds is 2.6 percent and the bonds have par value of 5000. What is the price of the bonds?
(Bond valuation relationships) Stanley, Inc. issues 10-year $1,000 bonds that pay $85 annually. The market price for the bonds is $1,034. The market's required yield to maturity on a comparable-risk bond is 8 percent. a. What is the value of the bond to you? b. What happens to the value if the market's required yield to maturity on a comparable-risk bond (i) increases to 12 percent or (ii) decreases to 6 percent? c. Under which of the circumstances in part b should you purchase the bond? Question content area bottom Part 1 a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 8 percent? $enter your response here (Round to the nearest cent.)
. A 25,000 4% bond with interest payable annually will mature on May 1, 1998. The date ofpurchase is July 1, 1988 to yield 3 ½% m=1. Find the purchase price of the bond on July 1,1988. (Bonds between dates)

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