Calculate the accrued interest of the following bond on Feb 15 based on Actual/365 day count conventions provided last coupon was paid on Dec 31. ● ● Face value: $5,000 Annual coupon rate: 4% Paid semi-annually $26.12 $25.21 $25.00 $24.74

Calculate the accrued interest of the following bond on Feb 15 based on Actual/365 day count conventions provided last coupon was paid on Dec 31. ● ● Face value: $5,000 Annual coupon rate: 4% Paid semi-annually $26.12 $25.21 $25.00 $24.74

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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Discount Amortization On the first day of the fiscal year, a company issues a $8,600,000, 10%, 10-year bond that pays semiannual interest of $430,000 ($8,600,000 × 10% × ½), receiving cash of $7,613,587. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Time Since Last Interest Company Company 2 Coupon Market Rate Price 9.4 79.75 23 days $ Accrued Interest Commission per Bond $9.35 Bonds Purchased 15 69 Total Price
Present Value of Bonds Payable; Premium Moss Co. issued $500,000 of four-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. 504146 X Feedback Check My Work Remember, the selling price of a bond is the sum of the present values of: the face amount of the bonds due at the maturity date and the periodic interest to paid on the bonds. The market rate of interest is used to compute the present value of both the face amount and the periodic interest.
< Compute bond proceeds, amortizing premium by interest method, and interest expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $29,000,000 of three-year, 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Compute the following: a. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $ b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ c. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ d. The amount of the bond interest expense for the first year.…
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Question #3 On January 1, 2021 a company issued a bond with a par value of $100,000 at 97. This bond has a coupon interest rate of 10% and will mature in 3 years. This bond will pay the interest expense annually on December 31. Straight-line amortization is used for premiums and discounts. Show the journal entries for the company for this bond. The company records journal entries on an annual basis. Date Асcount DR CR
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Knowledge Check 01 On January 1, Duffy Enterprises issued $100,000 in bonds that mature in 10 years. The bonds were issued at face value. The bonds have a stated interest rate of 8% and pay interest once per year on December 31. Prepare the appropriate journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) - View transaction list View journal entry worksheet No 1 Transaction A Gain on Bond Retirement Interest Expense General Journal Debit 104,000 Credit 8,000 Ⓒ
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
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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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