A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The bonds were sold at par value. If the company paid a selling fee of $50,000 and has an annual expense of $70,256 for mailing and record keeping, what is the true rate of interest that the company is paying for the borrowed money?

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: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay…

A: Bonds are a form of debt or loan taken by the company and interest needs to be paid on bonds on…

Q: Sandhill Co, issued $1,080,000, 9-year bonds. It agreed to make annual deposits of $86,000 to a fund…

A: Sinking fund refers to an amount of fund that should be kept aside for the purpose of paying off the…

Q: Holiday Brands issued $31 million of 10%, 30-year bonds for $28.5 million. What is the amount of…

A: Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: On November 1, 2006, Naruto Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1,…

A: A balance sheet is a report that shows an entity's assets, liabilities, and equity at a certain…

Q: Medhurst Corporation issued $87,594 in bonds for $98,782. The bonds had a stated rate of 2% and pay…

A: Interest payment = Face value of bonds*2%*3/12

Q: On January 1, a company issued 10%, 20-year bonds with a face amount of $80 million for $73,581,280…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: A company has $200,000 of 10-year bonds payable outstanding. These bonds had a discount of $24,000…

A: Bonds: It is a debt instrument issued by the government or the organisation to the holders.

Q: John issued $5 million of 10% bonds. At the time John issued the bonds, market rate of interest was…

A: A bond is the fixed income instrument that is issued by the company to raise finance. Generally,…

Q: On 1/3/2013, a company purchased 10 bonds with a nominal value of 5000 dinars per bond and bears an…

A: Here in this case we are required to make entry for the purchase of bond and its interest. when we…

Q: Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of course is…

A: The formula for yield to maturity is:Yield to maturity = C + F - P /n / F + P / 2Where, C is the…

Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…

A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…

Q: Medhurst Corporation issued $89,487 in bonds for $91,321. The bonds had a stated rate of 7% and pay…

A: BOND  Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

Q: Dunder-Mifflin, Inc. hires an investment banker for the sale of the 600,000 bonds from Problem 4.…

A: In corporate finance, determining the cost of debt is crucial for understanding the financial impact…

Q: Holiday Brands issued $20 million of 5%, 30-year bonds for $17.5 million. What is the amount of…

A: Given ,Face amount  = $20 million = $20,000,000Annual rate = 5% fraction of year (semiannually ) =

Q: Holiday Brands issued $32 million of 5%, 30-year bonds for $29.5 million. What is the amount of…

A: In this problem, we will calculate the amount of interest to be paid semi-annually.

Q: what is the carrying value of the bonds after one year?

A: Carrying Value of Bonds It is the total of bond's face value and  any un-amortized premiums or…

Q: On December 31, 2010 Stine Corporation issued $600,000, 8%, 5-year bonds.  The market rate of…

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: Massers Company is issuing long-term bonds to raise money for a planned acquisition. The face value…

A: Bond valuation is the process of determining the fair or intrinsic value of a bond, which represents…

Q: Medhurst Corporation issued $86,722 in bonds for $94,389. The bonds had a stated rate of 8% and pay…

A: The quarterly payment on the bond is calculated on the face value of the bonds at the stated rate…

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: Petron needs to raise $50,000 for capital expansion of its plant. The company issues ten year bonds…

A: Face Value of total bond issue = 50,000 Quarterly Compounding, Coupon = Coupon Rate / 4 * Face Value…

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: Savvy Drive-Ins borrowed money by issuing $3,500,000 of 9% bonds payable at 99.5. Interest is paid…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Q: A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8%…

A: A coupon bond is a bond that pays fixed interest payments in return to the bondholders till the…

Q: Cronan, Inc., sells $1,000,000 general obligation bonds for 98. The interest rate on the bonds,…

A: a.

Q: A business issued $1,000,000 worth of 10-year bonds in the form of $1,000 units. 8% interest is paid…

A: Bond High-security debt instruments that help businesses raise capital are called bonds. Bonds are…

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: Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What…

A: Given,  Bond Face Value $  50,000    Issue Proceeds $  48,000    Discount on Bonds $    2,000…

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: Why are these coming up as wrong?

A: Step 1 Journal is the part of book keeping. In this Interest is due or outstanding at market rate…

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 2% when the…

A: Face value = $ 100,000 Sale value ratio = 102

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…