2. Assuming when the bond is offered to Sweet, it has a remaining life of 4 years. Sweet required rate of return for her bond investment is 18% p.a.: a. Compute for the value of each bond? How much is the total value of the bonds offered? b. Based on the offered price, what is the bond approximate and exact yield to maturity? c. Would you recommend to Sweet to buy the bonds? Why? Smile Corp. Issued 16% p.a., 10-year Debenture bond, P6,000 face value, interest due every four (4) months. On October 1, Hapi purchased 20 bonds at par. On May 31, she sold 8 bonds to Honey at 105-3/4. Again on September 30, Hapi sold another 6 bonds to Sweet at 96-1/2.

Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?

Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267

Evie Inc. issued 50 bonds with a $1,000 face value, a five-year life, and a stated annual coupon of 6% for $980 each. What is the total amount of interest expense over the life of the bonds?

Smile Corp. Issued 16% p.a., 10-year Debenture bond, P6,000 face value, interest due every four (4) months. On October 1, Hapi purchased 20 bonds at par. On May 31, she sold 8 bonds to Honey at 105-3/4. Again on September 30, Hapi sold another 6 bonds to Sweet at 96-1/2. Required: 1. Assuming when the bond is offered to Honey, it as a remaining life of 6 years. Honey wants a 15% p.a.rate of return on her bond investment: a. Compute for the value of each bond? How much is the total value of the bonds offered? b. Based on the offered price, what is the bond exact yield to maturity? c. Would you recommend to Honey to buy the bonds? Why?

Pinas Corporation issued 16% p.a., 10-year Debenture bond, P6,000 face value, interest due every 4 months. On March 31, Fely purchased 20 bonds at par. On May 1, she sold 8 bonds to Pinky at 105-3/4. Again in September 30, Fely sold another 6 bonds to Bingbing at 96-1/2.  Required: Assuming when the bond is offered to Bing-bing, it has a remaining life 4 years. Bingbing required rate of return for her bond investment is 18% p.a.: a. Compute for the value of each bond? How much is the total value of the bonds offered? b. Based on the offered price, what is the bond approximate yield to maturity? c. Would you recommend to Bing-bing to buy the bonds? Why?

Pinas Corporation issued 16% p.a., 10-year Debenture bond, P6,000 face value, interest due every 4 months. On March 31, Fely purchased 20 bonds at par. On May 1, she sold 8 bonds to Pinky at 105-3/4. Again in September 30, Fely sold another 6 bonds to Bing- bing at 96-1/2.   Required: Assuming when the bond is offered to Pinky, it has a remaining life of 6 years. Pinky wants a 15% p.a. rate if return on her bond investment: Compute for the value of each bond? How much is the total value of the bonds offered to Pinky? Based on the offered price, what is the bond exact yield to maturity? Would you recommend to Pinky to buy the bonds? Why?

Pinas Corporation issued 16% p.a., 10-year Debenture bond, P6,000 face value, interest due every 4 months. On March 31, Fely purchased 20 bonds at par. On May 1, she sold 8 bonds to Pinky at 105-3/4. Again in September 30, Fely sold another 6 bonds to Bingbing at 96-1/2. Required: 1. Assuming when the bond is offered to Pinky, it has a remaining life of 6 years. Pinky wants a 15% p.a. rate if return on her bond investment: a. Compute for the value of each bond? How much is the total value of the bonds offeredto Pinky? b. Based on the offered price, what is the bond exact yield to maturity? c. Would you recommend to Pinky to buy the bonds? Why?

On January 1, Year 1, A Company purchased P500,000, 12% bonds of Erika Company for P464,882, a price that yields 14%. Interest on these bonds is payable every June 30 and December 31. The bonds mature on December 31, Year 5. On May 31, Year 4, to pay the maturing obligation, Tina sold P200,000 face value bonds at 102 (including accrued interest). Market value of the bonds on different dates is as follows:December 31, Year 1                110December 31, Year 2                108December 31, Year 3                106December 31, Year 4                  98Assume that the Company intended to collect the principal and interest over the term of the bonds and did not choose the fair value option. 2.What amount of gain or loss should Tina Company recognize on the sale of investments on May 1, Year 4?     P497 loss 9,503 gain 14,254 gain None of the above

On July 1, 2002, Roger Co. paid P1,198,000 for 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on December 31 and June 30. The bonds were purchased to yield 8%. Roger uses the effective interest method to recognize interest income from investment. What should be reported as carrying amount of the bonds in Roger’s December 31, 2002 balance sheet? P1,207,000   P1,198,000   P1,195,920   P1,193,050