A $10 000 bond bearing interest at 5% payable semi-annually is redeemable at par on August 04, 2035. The bond is sold on March 24, 2021, to yield 5.3% compounded semi-annually. How much is the bond sold for?

Q: How much is the price of a P 100, 000.00 bond that pays a dividend of semi-annually redeemable at…

A: A bond is a fixed-income security that reflects an investor's debt to a borrower (typically…

Q: On January 1, 2020, MNOCompany issued its 9%, P2 million bonds, which mature on January 1, 2030. The…

A:

Q: On January 1, 2021, Bishop Company issued 8% bonds dated January 1, 2021, with a face amount of…

A: The effective interest technique appears to be a financial accounting technique for amortizing or…

Q: On January 1, 2020, Metro Inc. issued a five-year bond with a face value of $700,000. The bond bears…

A: Discount or Premium on Bond Issue: A premium bond has a coupon rate that is greater than the market…

Q: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: SOLUTION- BOND  IS A FIXED INSTRUMENT THAT REPRESENT A LOAN MADE BY AN INVESTOR TO A BORROWER…

Q: A P10,000, 8% bond pays dividends semi annually and will be redeemed at 110% on April 29, 2027.It is…

A: Par value = P 10,000 Coupon rate = 8% Semi annual coupon amount = 10000*0.08/2 = $ 400 Years to…

Q: On January 1, 2020, Junibond issued 5-year 10%, P10,000,000 for P10,246,744. Interest and principal…

A: Amount of Annual installments = Issue value of the bonds / Present value factor at yield rate…

Q: On February I, 2019, Osborn pie sold 12% bonds having a maturity value of $800,000. The bond yields…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: Mania Enterprises issued 11% bonds dated January 1, 2020, with a principal amount of OR 60 million.…

A: Bonds are the fixed income securities issued by a business to raise capital in form of debt from the…

Q: Sun Corporation markets a 10-year bond issue dated January 1, 2020. The bonds pay interest…

A: solution : Hence the correct answer is option d. Month accrued: 1, Amortization period: 113 months…

Q: On July 1, 2021, Glamorous Corporation issued 11% bonds in the face amount of P2,000,000 that mature…

A: Interest =  P2,000,000 × 11% = P220,000

Q: A P1,000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 2022. It is…

A: Bonds give income to investors in the form of coupon payments, which are commonly made quarterly,…

Q: On January 1, 2021, ABCompany issued 10% bonds dated January 1, 2021, with a face amount of $20…

A: 1. Determine the price of the bonds at January 1, 2021.

Q: A 12% Pl face value bond with interest payable June 30 and December 31, which matures on June 30,…

A: Total cash received by June 30, 2022 = Redemption value of the bonds + Semi-annual interest on the…

Q: Scottie Adams Bird Supplies issued 10% bonds, dated January 1, with a face amount of $190,000 on…

A: Data given: Face value=$190,000 Coupon rate = 10% (compounded semi-annually) = 10%/2 = 5% n= 10…

Q: On March 1, 2021, BabyM company issued a four-year, P3,000,000 face value, 11% term bonds for…

A: Bonds issued at Premium: When a bond is issued at a premium, that means that the bond is sold for an…

Q: On January 2, 2022, the Peace Company issued P2,000,000 of 9% convertible bonds at par. The bonds…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On January 1, 2020, Johny Industries issued ten-year bonds with a face value of $2,000,000 and a…

A: The bonds are the financial instruments for the business which are used to raise money from the…

Q: Determine the selling price of the bonds.

A: The selling price of bond is calculated as present value of coupon amount which is based on coupon…

Q: On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 1, 2030.…

A: Interest expense = Carrying value on Jan 1, 2020*10% Interest payment = Face value*9%

Q: A savings bond with a face value of 1000 bears interest at 7% payable semi-annually and matures on…

A: Bond Sell at premium or at discount If bond price is  trading at a value that  higher than face…

Q: On January 1, 2020, Sabond issued a 5-year 12%, P10,000,000. Interest is payable annually every…

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present…

Q: A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015. The bond pays 5%…

A: Accrued interest income is the coupon payment which is to be paid regularly to bond holders. It can…

Q: A company is issuing $330,000 worth of 5-year bonds on August 14, 2020, bearing an interest rate of…

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

Q: On January 1, 2021, BBB Company issued 10% bonds payable dated January 1, 2021 with a face amount of…

A: Present Value of Bond = PV of Coupon Payments + PV of Redemption Value PV of Coupon Payments =…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: Determine the price of the bond:   Present value of principle amount ($200,000, 4%, 10 years)…

Q: On January 1, 2018, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2018, with a…

A: The present value represents the present value of the bond that will be redeemed in the future.…

Q: On January 1, 2021, a company issued serial bonds with a face value of P3,000.000 and stated rate of…

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

Q: On December 31, 2022, Miriam Company issued serial bonds with face value of P4,000,000 and a stated…

A: The issue price of bonds will be equal to the present value of all future cash inflows.   The…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January…

A: Given information Future value= 80,000,000 Number of years= 10 × 2= 20 Rate of interest= 12% ÷ 2=…

Q: On December 31, 2020, Balbond issued 3,000 of its 5-year 6%, P1,000 face value bonds at par.…

A: The effective rate of interest paid is the effective interest rate. The target or required interest…

Q: On January 1, 2018, Mania Enterprises issued 12% bonds dated January 1, 2018, with a face amount of…

A: 1. Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: On January 1, 2020, Merry Company issued its 9% P9,000,000 face value bonds, which matures on…

A: Total discount on bonds issue = face value of bonds - issue value of bonds = P9,000,000 - P8,451,000…

Q: On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that annually on December 31st…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: A P75,000, at 11% bond pays coupon semi-annually redeemable at P90,000 on January 13, 2017, is…

A: A Bond is an instrument that represents the loan that is made by the investor to the company and…

Q: Mindsetta Music Inc. issued bonds on March 1, 2020, with a par value of $420,000. The bonds mature…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: On June 30, 2021, Singleton Computers issued 7% stated rate bonds with a face amount of $200…

A: Price of bond will be present value of maturity amount & interest amount as per market rate of…

Q: On December 31, 2021, Interlink Communications issued 8% stated rate bonds with a face amount of…

A: n= 30 years i= 9%   Cashflow Amount Present value factor@9% Present value Interest…

Q: A P10,000, 8% bond pays dividends semi annually and will be redeemed at 110% on April 29,2027. It is…

A: Par value = P 10000 Coupon rate = 8% Semi annual coupon amount = 10000*0.08/2 = P 400 Period from…

Q: On January 1, 2021, Jackie Company issued 2,000 P5,000 8% five-year bonds at 90.35 when the market…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

Q: Sheffield Company sells 8% bonds having a maturity value of $2,180,000 for $2,014,720. The bonds are…

A: Effective interest rate is the return on saving account on an investment.

Q: On January 1, 2019, Marites Company issue its P10,000,000 face amount, 10% bonds to yield 8% per…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.

Q: On January 1, 2021, Mania Enterprises issued 16% bonds dated January 1, 2021, with a face amount of…

A: Bond: Bond is termed as an income instrument which provides fixed rate of interest. It is a type of…

Q: Jan 1, 2020, purchased for $409,686 a 7.5% bond that matures in 5years, when the market interest…

A: Bond is a financial instrument that gives bondholder a legal right of receiving payments on regular…

Q: 6. A P10,000, 8% bond pays dividends semi- annually and will be redeemed at 110% on April 29, 2027.…

A: Here,

Q: The Werner Company issued 10-year bonds on January 1, 2020. The debt has a face value of $800,000…

A: Bond value: Using the bond valuation, you may determine the potential fair value of a given bond by…

Q: ompu tech Ltd issued OMR 100,000, 6% 5 years term bonds on 1 January2020, it is due for redemption…

A: The question is based on the concept of Financial Intruments.

Q: On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of…

A: Given,  Stated rate = 6% Face value = $100,000,000 Market rate = 7%

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: