Barry's Steroids Company has $1,000 par value bonds outstanding at 16 percent interest. The bonds will mature in 40 years If the percent yield to maturity is 12 percent, what percent of the total bond value does the repayment of principal represent? Assume interest payments are annual Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.

Barry's Steroids Company has $1,000 par value bonds outstanding at 16 percent interest. The bonds will mature in 40 years If the percent yield to maturity is 12 percent, what percent of the total bond value does the repayment of principal represent? Assume interest payments are annual Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.

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

See similar textbooks

Related questions

Q: Sunland Railroad Co. is about to issue $320,000 of 6-year bonds paying an 11% interest rate, with…

A: One kind of security is a bond. Securities are financial tools that signify ownership in a business…

Q: Bonds issued by the Tyler Food chain have a par value of $1,000, are selling for $1,110, and have 20…

A: Given: Particulars Amount Par value(FV) $1,000 Present value(PV) $1,110 Years 20

Q: Sheridan Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a…

A: It is a bond valuation problem. It first needs to calculate the price of the bond. Then it is…

Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price…

A: Solution:- Yield to maturity (YTM) of a bond means the rate of return the bond is yielding. We know,…

Q: Cross Country Railroad Co. is about to issue $100,000 of 10-year bonds that pay a 5.5% annual…

A: Present value (PV) is a financial concept used to determine the current worth of a future sum of…

Q: Essex Biochemical Company has a $1,000 par value bond outstanding that pays 20 percent annual…

A: Step 1: Given Value for Calculation Face Value = fv = $1000Annual Coupon Rate = c = 20%Yield to…

Q: Essex Biochemical Company has a $1,000 par value bond outstanding that pays 10 percent annual…

A: Bonds refer to instruments used to raise debt capital for the issuing company from non-traditional…

Q: O Corp issues 5%, 20-year bonds with a total face amount of $1,000,000. The market interest rate for…

A: The issue price of bonds will be present value of maturity amount and present value of interest at…

Q: JKJ Company has a $100,000 bond payable, due in 5 years, which pays interest annually of 4%. Without…

A: Current liabilities are financial obligations or debts that a company expects to settle within one…

Q: The Garland Corporation has a bond outstanding with a $70 annual interest with semiannual payment, a…

A: If the bonds are issued by the company fo certain period at offered interest payments at regular…

Q: Compute the selling price of 12.00%, 15-year bonds with a par value of $420,000 and semiannual…

A: The price of bonds would be the present value of the interest annuity & maturity amount at…

Q: Exodus Limousine Company has $1,000 par value bonds outstanding at 12 percent interest. The bonds…

A: Bond price refers to the market value of a bond, which represents the present value of its future…

Q: Wildhorse Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a…

A: As per instruction question 8.30(c) will be attempted. YTM is the annual return that the bond…

Q: An insurance company is analyzing the following three bonds, each with five years to maturity,…

A: In general, lower coupon bonds have a higher duration than a similar higher coupon bond. This is…

Q: Harold Reese must choose between two bonds: Bond X pays $85 annual interest and has a market…

A: Yield-to-Maturity(YTM) shows the average annual return earned if investment is not sold and retained…

Question

Barry's Steroids Company has $1,000 par value bonds outstanding at 16 percent interest. The bonds will mature in 40 years
If the percent yield to maturity is 12 percent, what percent of the total bond value does the repayment of principal represent? Assume
interest payments are annual Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the
formula and financial calculator methods.
Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.
Principal as a percentage of bond price

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation of percent of total bond value

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Need help with E.
You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 9 percent, which is paid semiannually. The yield to maturity on the bonds is 8 percent annual interest. There are 15 years to maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the price of the bonds based on semiannual analysis. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. With 10 years to maturity, if yield to maturity goes down substantially to 6 percent, what will be the new price of the bonds? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
1
Please show complete steps using both formula dn financial calculator. The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 19 years. Calculate your final answer using both the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) What is the bond price at. . . a. 6 percent b. 8 percent c. 12 percent.
You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 10 percent, which is paid semiannually. The yield to maturity on the bonds is 12 percent annual interest. There are 25 years to maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the price of the bonds based on semiannual analysis. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond price b. With 20 years to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) New bond price
You are called in as a financial analyst to appralse the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quoted annual Interest rate of 9 percent, which is pald semlannually. The yleld to maturity on the bonds is 12 percent annual Interest. There are 10 years to maturity. Use Anpendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the price of the bonds based on semiannual analysis. (Do not round Intermedlate calculations. Round your final answer to 2 decimal places.) Bond price 827.05 b. With 5 years to maturity, if yield to maturity goes down substansially to 10 percent what w be the new price of the bonas? (Do not round Intermediate calculetions. Round your final answer to 2 decinsel places.) New bond prc
Give typing answer with explanation and conclusion
Revise your worksheet assumptions as indicated below and then answer the questions that folllow: Face amount Stated rate Number of years Market rate Ⓒ Discount O Premium Required: 1. Was the bond issued at a discount or a premium? Date $3,050,000 2. Complete the first four rows of the amortization schedule. (Round your answers to 2 decimal places.) June 30, 2021 December 31, 2021 June 30, 2022 December 31, 2022 8% 10 9% Cash Paid Interest Change in Carrying Expense Value Carrying Value
Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.
please use P*R*T fomular as well. Thanks
The Lone Star Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 18 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual. a. 7 percent b. 8 percent c. 13 percent Bond Price I
You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 9 percent, which is paid semiannually. The yield to maturity on the bonds is 8 percent annual interest. There are 15 years to maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds based on semiannual analysis. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. With 10 years to maturity, if yield to maturity goes down substantially to 6 percent, what will be the new price of the bonds? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.