v.1 A bond issue of 6%, 6-year bonds with a face value of $36,500 with interest payable annually onJanuary 1. Market interest rate is 8%. What is the present value of the bonds? (For calculationpurposes, use five decimal places as displayed in the factor table provided. Round your answers to Odecimal places (e.g., 5,275).)Click here to view the factor table.Present value of interest paymentsPresent value of principalSA$$Present value of the bonds$

Step 1: Given,Face value of Bonds = $36,500Coupon rate = 6%Market Interest Rate = 8%Number of…

Answered: A bond issue of 6%, 6-year bonds with a…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 7R

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A bond issue of 4%, 8-year bonds with a face value of $43,000 with interest payable annually on January 1. Market interest rate is 6%. What is the present value of the bonds? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answers to O decimal places (e.g., 5,275).) Click here to view the factor table. Present value of interest payments $ Present value of principal $ Present value of the bonds $ 69
Calculate the selling price of the following 5-year bond issue: e. # bonds Bond rate of interest Interest payable Market rate of interest Bond maturity (face) value 600 5.8% semi-annually 6.0% $1,000
The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. One-Year Bond Rate 2.00% 3.00% 4.00% 7.00% 10.00% 11 =% 21 = 131 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 141 151 = = = Year 1 2 3 4 5 % % % % Multiyear Bond Rate 2.00% 3.00% 6.00% 8.00% 11.00%
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.
I need help using the present value of a bond calculator at https://www.thecalculator.co/finance/Bond-Price-Calculator-606.html. Approximate the present value for the following $1,000 bonds. Note: Round answers to 2 decimal places.
tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021
For a one year bond of $2,600 at a simple interest rate of 11% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)
The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. Year 1 2 3 4 5 One-Year Bond Rate 2% 4% 5% 8% 11% Multiyear Bond Rate 2% 4% 6% 9% 12%
Listen Assume that there is a bond that pays $20.00 at the and of year 2, and $105.00 at the end of year 7. It sells at a total =$(20.00+105.00). The Macauley duration of the bond is? Answer with two digits decimal accuracy. Blank Excel Worksheet Your Answer
The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. Year One-Year Bond Rate Multiyear Bond Rate 1 2.00% 2.00% 2 3.00% 4.00% 3 6.00% 6.00% 4 9.00% 7.00% 5 11.00% 9.00% Part 2 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.)

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