eBookXOpen spreadsheetShow Me HowPresent value of bonds payable; discountPinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $20,000,000 of four-year, 8% bonds, with interest payablesemiannually, at a market (effective) interest rate of 11%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform therequired analysis, and input your answers in the question below.$Office 365Determine the present value of the bonds payable. Round your answer to the nearest dollar. Excel template - Saved5vFileB1323456789Homev16171819202122✓Insert10111213 PV of bonds1415ArialX ✓ fxAB1 Present value of bonds payable; discountDATAFace amount of bondsContract rate of interestTerm of bonds, yearsMarket rate of interestInterest paymentDrawPage Layout10 v$20,000,0008%411%SemiannualAmountFormulaskCSearch (Option + Q)B H✓ ✓ Av .....DataUsing formulas and cell references, perform the required analysis, and inputyour answer into the Amount column. Transfer the numeric result for the greenentry cell (B13) into the appropriate field in CNOWv2 for grading.FormulaCHERYReviewViewEvabDHelpEditingCurrencyE$ ✓-0.00

Bond :— Bond is a Liability which is Owned By the Owner for a specific period of time on which…

5v B13 1 2 3 4 5 8 9 Arial X ✓ fx 6 Term of bonds, years 7 Market rate of interest Interest payment A B Present value of bonds payable; discount Face amount of bonds Contract rate of interest 10 11 12 13 PV of bonds 14 15 16 17 18 19 20 21 22 DATA ✓10 V B EA... $20,000,000 8% 4 11% Semiannual Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green. entry cell (B13) into the appropriate field in CNOWV2 for grading. C Amount Formula vab D Currency E $ ~ 0 .00

5v B13 1 2 3 4 5 8 9 Arial X ✓ fx 6 Term of bonds, years 7 Market rate of interest Interest payment A B Present value of bonds payable; discount Face amount of bonds Contract rate of interest 10 11 12 13 PV of bonds 14 15 16 17 18 19 20 21 22 DATA ✓10 V B EA... $20,000,000 8% 4 11% Semiannual Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green. entry cell (B13) into the appropriate field in CNOWV2 for grading. C Amount Formula vab D Currency E $ ~ 0 .00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 9-21 (Static) Part 1 Required: 1-a. If the market rate is 8%, calculate the issue price. (EV of $1. PV of $1. EVA of $1, and PVA of $1) 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req 1a Req 1b If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Bond Characteristics Amount $ 41,000,000 Face amount Interest payment Number of periods Market interest rate Issue price Ren 1a Rea 1b
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4G. 4G 14:39 O ® ë A v 0.70 54 01:23:36 Remaining Multiple Choice Statement 1: When bonds are sold between interest dates, any accrued interest is credited to Interest receivable. Statement 2: A five year term bond was issued by an entity on January 1, 2011 at a discount. The carrying amount of the bond on December 31, 2012 would be higher than the carrying amount on December 31, 2011 Only Statement 1 is correct. Only statement 2 is correct. Both statements are correct. Both statements are not correct 12 of 56
Question 5 Company ABC, Co issued bonds at a premium and reports interest expense with the effective interest method. At each subsequent interest payment date, the cash interest paid is: A) Not Equal to the effective interest. B) Equal to the effective interest. C) Not Always the same dollar amount O A O B O C Drovieu MacBook Air F1 F2 F3 F4 F5 F6 F 7 23 24 3 4 & 7 Q E R T A F G H C V B
Exercise 7-19 (Algo) Bonds payable-various issues LO 7-8 Reynolds Company issued $71 million face amount of 4.25% bonds when market interest rates were 4.13% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? Note: Enter your answer in dollars, not millions of dollars. b. Were the bonds issued at a premium or discount? c. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? a. Annual interest payment b. Bonds issued c. Annual interest expense will be
Problem 6-2 Determinants of Interest Rates for Individual Securities (LG6-6) You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 2.00 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate= 0.60% Default risk premium = 1.90% Liquidity risk premium = 1.40% Maturity risk premium = 2.50% a. What is the inflation premium? (Round your answer to 2 decimal places.) Expected IP %
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1 med chp 14 excel pleae show formulas used to find price of bonds in excel
RCISES i S Exercise 14-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $700,000. The bonds mature in 6 years and pay 6% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (Table B.1 Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n = i= Table Value Amount Required 1 Present Value $ Saved Required 2 > 0