A bond issue of 6%, 7-year bonds with a face value of $35,500 with interest payable annually on January 1. Market interest rate is 8%. 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 0 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 $

A bond issue of 6%, 7-year bonds with a face value of $35,500 with interest payable annually on January 1. Market interest rate is 8%. 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 0 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 $

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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bond contract rate =7% semi- anual bond -$10,000 bond market =6% semi annual bond life = 10 years 1) find the selling price of this bond 2) will it be sold at a discount or premium 3) do the journal entry for the issuance 4) calculate the discount/premium authorization per period (use the slightline method ) 5) do the entry for the payment of cash interest period 6) do the entry for the amortization of the discount /premium per period 7)find total interest expense per period 8) show the balance sheet presentation of the bond after two periods have elapsed
Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your answers to 2 decimal places.) 1. 3 % percent coupon corporate bond (paid semiannually): 2. 4.25 percent coupon Treasury note (paid semiannually):
Current Attempt in Progress × Your answer is incorrect. Marin Inc. issues $2,100,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest fo bonds of similar risk is 9%. Click here to view factor tables. What amount will Marin receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor tabl provided and final answer to O decimal places, e.g. 458,581.)
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What is the market value of each of the following bond issues? (Note: Round to the nearest dollar.) All three bonds were sold on January 1, 2021 10% bonds of $1,000,000 sold on bond issue date ; 10-year life; interest payable 3 times per year on April 1st, August 1st and December 1st; effective rate is 12% 9% bonds of $200,000 sold on bond issue date; five-year life; interest payable semiannually on May 1st and November 1st; effective rate is 8% For the two above bonds, you are to calculate the price of the bond on the day of sale. You are to create an effective interest table for each bond. You are to journalize the sale of the bond, and journalize interest payment #3. 3. 8% bonds of $150,000 sold 30 months after bond issue date; 15-year life; interest payable annually; effective rate is 10%. You are to calculate what the bond will sell for after 30 months.
Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Shields Inc. issued $700,000 of 9%, 20-year bonds for $769,275, yielding a market (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a. Show Excel inputs to confirm the bond issue price. Note: Round your answer to two decimal places. rate= nper pmt FV => Answer = $ b. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and premium amortization on June 30 of the current year, and (3) semiannual interest payment and premium amortization on December 31 of the current year. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Note: Round your answers to the nearest whole dollar. Balance Sheet…
How do I Prepare a journal entry for a bond to record the installment payment and any interest. with an effective interest rate for the bond is 14% per year? Is this the correct way below? Credit Cash Debit Mortgage payable Debit Interest Payable Credit Cash
Requirement 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.) 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%,paid semiannually. The market rate of interest is 12%at issuance. 2. Same bonds payable as in Requirement 1, but the market interest rate is 16%. 3. Same bonds payable as in Requirement 1, but the market interest rate is 8%.
How to find accrued interest on bonds payable for just March 2018 info on bonds payable- 6%, interest payment dates May 1 and Nov 1, due May 2036; balance per ledger is 10,000,000
Determine the market price of a $209,000, ten-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of 10%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Click here to view factor tables Market price of bond issue $
What account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) ? (2) ? (1) Interest Expense debit $11,000, and (2) Cash credit $11,000 (1) Interest Expense debit $10,000 and (2) Cash credit $10,000 (1) Cash debit $20,000 and (2) Interest Expense credit $20,000 (1) Cash debit $22,000, and (2) Interest Expense credit $22,000
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