A 30-year, $1,000 strip bond was issued by Sun Oil Company at a yield rate of 8.8% compounded semiannually. How much money did Sun Oil borrow by issuing this bond?

Q: A 10-year, 6%, $5,000 bond (cash interest payable 3% semiannually) is sold to yield 8% interest.…

A: Issue Price=PV of face value+PV of coupon payments

Q: Calculate the cost of capital of the bond!

A: Cost of capital refers to cost of raising and using money Formula I(1-t) + (fv-np)n---------------.…

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

A: Bonds are a form of liability or loan taken by the business. Business needs to make regular interest…

Q: Marmalice Co. issued $4,000,000 of 5-year, 10% bonds, with interest payable semiannually, at a…

A: According to present value, the amounts of money today are worth more than equivalent sums in the…

Q: Kiss Greetings planned to raise $500,000 by issuing bonds. The bond certificates were printed…

A: In the given case,The bond certificates were printed bearing a stated interest rate of 6%, which was…

Q: Blossom Railroad Co is about to issue $318,000 of 10 year bonds paying an 12% interest rate with…

A: A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors…

Q: The 7.4 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years,…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: A ten-year bond issue of $400,000, interest rate of 9% paid semiannually, is sold for $440,000 when…

A: Premium on bonds payable = Issue price - Face value of bonds = $440000 - $400000 = $40000

Q: Abbington Inc. issues $385,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Time value of money:— According to this concept, the value of money in the present day is greater…

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: What is the present worth of a $10000 bond that has an interest of 20% per year payable…

A: The bond is fixed-income security issued by the company to raise funds. The present worth of a bond…

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: Pina Corporation issues $590,000 of 9% bonds, due in 10 years, with interest payable semiannually.…

A: Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: Find the Cost of Bond to the issue. The company issued 10,000 bonds of $1000 each to be redeemed for…

A: Cost of bond is computed by following formula-Cost of bond =  Where,I = interest or coupon amountRV…

Q: ABC Manufacturing issues a $100,000 face value bond at a discount of $92,788, 5-year maturity, 10%…

A: Bond are issued at a discount to their face value when the market interest rates are higher than the…

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: Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the…

A: Formula: Total cash flows = Principal + 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: Treehouse Inc. issued $800,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Bonds are the securities issued by the entity for the purpose of raising funds from the market. It…

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

A: Using excel PV function

Q: Bayside Inc. sells $5,000,000 of five-year, 10% bonds at the start of the year.  The bonds pay…

A: Value of Bonds=$5,000,000  Coupon rate=10% Years to maturity=5 years Effective yield=9% Bond…

Q: ith a face value of $15 mil e maturity of the issue is fi nterest to be paid on the be pnually…

A: Given information : Face value = $15 million Average maturity = 15 years Interest paid = $12,375

Q: Jiminiys cricket farm issued a 30 year.8 percent semiannual bond 3 years ago.the bond currently…

A: Pretax cost of debt is YTM of the bond

Q: If a company issues $100,000 Face Value, 10 year bonds with a contractural  interest rate of 6%,…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: A 25-year bond issue of 4,800,000 and bearing interest at 3% payable annually is sold to yield 2.6%…

A: Assume the face value of the bond is $1,000. The number of outstanding bonds is 4,800,000. The…

Q: price = $950,000. Interest rates are

A: In this question, a bank holds a 10-year $2 million face value bond with a duration of 8 years. The…

Q: ssue price of the bond

A:

Q: Acme Organic Potato Chip Corp. sold an issue of 12-year $1,000 par bonds for general corporation…

A: The price of the bond is the value that investors are willing to pay for a bond.

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: earson Co issue its $140,000 at a price of 94, the stated rate is 6%, the bond term is 4 years, and…

A: Solution: Annual interest payment = Face value of bond * stated rate of interest  = 140000 *6%  =…

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: 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: Pet Food Company bonds pay an annual coupon rate of 8.51 percent. Coupon payments are paid…

A: Solution:-Bond value means the price at which a bond should trade in the market. It is the summation…