9. Company BOND, issued 1,000 bonds with par value of $500 and coupon rate of 10%. Interest on bonds is paid semi-annual and the bond will mature at the end of five years. How much interest will be paid on the third semi-annual payment if the bonds were issued at the prevailing interest rate of 8% $21,346.55 $25,000.00 $41,938.79 $50,000.00

Q: present value of 10 year bonds payable with a face value

A: Bond is issued by the company to rais the fund.it is a long term liability for the firm.

Q: 17. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A bond issue of 6%, 7-year bonds with a face value of $35,500 with interest payable annually on…

A: Here,Face Value of Bond is $35,500Coupon Rate is 6%Time to Maturity is 7 yearsMarket Interest Rate…

Q: A Corp. issues 10,000 bonds with a face value of $26,000 each and a bond interest rate of 18% per…

A: A bond is an instrument that allows issuers access to debt capital from investors instead of…

Q: On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is…

A: Given, Face value = $2,500,000 Coupon rate = 8% Issue at 89.35%

Q: A 10-year annual payment corporate bond has a market price of $1,150. It pays annual interest of…

A: Bonds are debt instruments issued by companies. The issuing company pays periodic interest or…

Q: Assume that $1 million five-year bonds paying an interest rate of 10% are issued when the market…

A: If rate of interest on the bonds and the market rate of interest are same then bonds are issued at…

Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are…

A: Bonds are commonly used by investors to generate income and diversify their investment portfolios.…

Q: e present value of

A: Answer:To calculate the present value of a bond, we can use the…

Q: XYZ Corporation wants to issue ten-year $1,000 bonds 6% stated rate paying interest annually. Market…

A: Bonds represents the obligation of the company arose by borrowing financial help from the public by…

Q: On January 1, a company issued $19,383,400 of 12 year bonds with a coupon rate of 7%, payable…

A: Compound = 2 (semiannually) Time = t = 12 * 2 = 24 Coupon rate = 7/2 = 3.5% Interest rate = r = 5/2…

Q: 18. Given the information below, which bond(s) will be issued at a discount? Bond 1 Bond 2|Bond 3…

A: 18.  Bond 1, and Bond 2 are issued at discount.

Q: On January 1, 20x1, ZEAL EAGERNESS Co. contemplates on issuing 10% serial bonds with face amount of…

A: Estimated issue price of the bonds on January 1,20*1 is equal to the PRESENT VALUE..

Q: Allington Corp. issues $560,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Computing Bond Issue Price Abbington Inc. issues $700,000 of 9% bonds that pay interest…

A: Price=Coupon amount*PVAF(YTM,n)+Redemption value*PVIF(YTM,n) YTM=8/2=4% second case ,YTM=10%/2=5%…

Q: 30-year bonds with an annual interest rate of 8 per cent are sold at 9%YTM.  Current price is…

A: Formula of change in bond price is shown:

Q: Essex Steroids Co. has a $1,000 par value bond outstanding that pays 10% annual interest. The…

A: Step 1:We have to calculate the price of the bond when the maturity of the bond is 30 years.We will…

Q: The company issues 10.0%, 10-year bonds with a total face amount of $1,000,000. The market interest…

A: A bond is an instrument offered in a debt market that pays the investor a regular set of interest…

Q: Assume a firm issues a bond with a face value of $1,000. The stated rate of interest is 20%. The…

A: A bond is a debt instrument that is used by organizations to gather capital for financing their…

Q: Mountain Excursions issues bonds due in 15 years with a stated interest rate of 11% and a face value…

A: Bonds are fixed-income securities that simulate loans made by investors to borrowers. In a contract…

Q: A 15-year bond issue of 5,400,000 and bearing interest at 4% payable annually is sold to yield 3.85%…

A: Year = 15Face value = 5,400,000Interest = 4%/100 = 0.04 in decimalYield to maturity = 3.85%/100 =…

Q: 2. Deccan Corporation issued 10% 1,000,000 bond on January 1.2011 The market rate of interest is 12%…

A: The objective of the question is to calculate the price an investor would pay for the bond, record…

Q: Texas Instruments Incorporated (TXN) bonds issued a 20-year bond with an annual coupon rate of 5%, a…

A: Bonds are debt instruments issued by companies. They pay periodic interest payments.

Q: 546 Bonds- A mortgage bond with a face value of $10,0O00 has a bond interest rate of 6%o per year…

A: Bonds are debt certificates used by entities to raise debt funds from public. Bonds are listed in…

Q: For the given corporate bond, whose annual simple interest rate is provided, find the semiannual…

A: Compound = Semiannually = 2 Principal Amount = p = $11,900 Time = t = 10 * 2 = 20 semiannual…

Q: Beluga inc issued 10 year bond with the face value of 110,000 and I stated rate of 4% when the…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: 1. Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…

A: Bonds are the type of debt instrument that the government or corporation issues to raise money. The…

Q: 19. % BAD Company issues 9%, 10-year bonds with a face amount of $1,000,000 on January 1, 20A for…

A: Bonds payable are one of the sources of finance and are shown as liability.  If the interest rate is…

Q: A.When market rate of interest was 12%, Joshkin Corporation issued $1,000,000 11%, 10-year bonds…

A: Year Present Value Factor @ 12% 1 0.8929 2 0.7972 3 0.7118 4 0.6355 5 0.5674 6 0.5066…

Q: 63

A: The new price can be computed as follows :

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: