neat and clean answer needed Calculate the purchase price of the $1,000 face value bond using the information given below. (Round your answer to the nearestcent.)Purchase date Coupon rate (%) Market rate (%)July 1, 2015Issue dateMaturity dateJan 1, 2027Jan 1, 20077.33.8Assume that:• Bond interest is paid semiannually.• The bond was originally issued at its face value.• Bonds are redeemed at their face value at maturity.• Market rates of return are compounded semiannually.Bond price2$

Par value (FV) = $ 1000 Coupon rate = 7.3% Semi annual coupon amount (C) = 1000*0.073/2 = $ 36.50…

Calculate the purchase price of the $1,000 face value bond using the information given below. (Round your answer to the nearest cent.) Maturity date Jan 1, 2027 Purchase date Coupon rate (%) Market rate (%) July 1, 2015 Issue date 7.3 3.8 Jan 1, 2007 Assume that: • Bond interest is pald semiannually. • The bond was originally Issued at its face value. • Bonds are redeemed at their face value at maturity. • Market rates of return are compounded semiannually. Bond price 24

Calculate the purchase price of the $1,000 face value bond using the information given below. (Round your answer to the nearest cent.) Maturity date Jan 1, 2027 Purchase date Coupon rate (%) Market rate (%) July 1, 2015 Issue date 7.3 3.8 Jan 1, 2007 Assume that: • Bond interest is pald semiannually. • The bond was originally Issued at its face value. • Bonds are redeemed at their face value at maturity. • Market rates of return are compounded semiannually. Bond price 24

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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Assume that a bond is issued with the following characteristics: Date of bonds: January 1, 2023; maturity date: Dec. 31, 2027; face value: $200,000; Coupon interest rate: 10 percent paid semiannually; market interest rate: 12 percent; issue price: $185,280; bond discount is amortized using the effective interest method of amortization. What is the amount of bond discount amortization for the June 30, 2023, adjusting entry? A) $559 B) $1,117 C) $10,000 D) $11,117
Caiculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Dec 15, 1991 Maturity date Dec 15, 2026 Purchase date ১une 15, 2013 Coupon rate (XY 5.50 Market rate (X). 7,4 Assume that • Bond interest is paid semiannually. • The bond was originally issued at its face value. • Bonds are redeemed at their face value at maturity • Market rates of return are compounded semiannually Bond price
Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Dec 15, 2013 Maturity date Dec 15, 2043 Purchase date June 15, 2023 Coupon rate (%) Market rate (%) 5.00 6.4 Assume that • Bond interest is paid semiannually. . The bond was originally issued at its face value. Bonds are redeemed at their face value at maturity. • Market rates of return are compounded semiannually. Bond price
Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Maturity date Purchase date Coupon rate (%) Market rate (%) Dec 15, 1992 Dec 15, 2022 June 15, 2010 5.40 7.2 Assume that Bond interest is paid semiannually. The bond was originally issued at its face value. Bonds are redeemed at their face value at maturity. Market rates of return are compounded semiannually. Bond price $
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Time Coupon Market Rate Accrued Commission Bonds Total Interest per Bond Purchased Price Company Since Last Price Interest Company 2 9.4 79.75 23 days $9.95 15
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Market Price Time Since Last Accrued Interest Commission Coupon Rate Bonds Purchased Total Price Company per Bond Interest Company 2 9.8 79.75 23 days $ 6.26 $9.35 15 $ 1149.9
Calculate the value of each bond and discuss whether it sells at par, discount, or premium. (Annual interest rate) O A. Bond Bond Value A B C O B. Bond A B C O C. Bond A B с O D. Bond A B C $1,149.39 Discount $1,000.00 Par $85.60 Premium Bond Value Sells at par/discount/premium Bond Value $1,149.39 Premium $1,000.00 Par $85.60 Discount Sells at par/discount/premium Bond Value Sells at par/discount/premium $1,149.39 Premium $1,000.00 Par $85.60 Premium Sells at par/discount/premium $1,049.39 Premium $1,100.00 Premium $85.60 Discount Bond Par value Coupon interest Years to rate maturity JA B IC $1000 14% $1000 18% $100 10% 120 16 18 Required return 12% 8% 13%
Give typing answer with explanation and conclusion 1- Imagine the bond above displayed the following details: $10,000 Matures: January 31, 2030; Interest of $200 payable June 30 and December 31 of each year. Can you calculate the annual effective interest rate for this bond? a)2% b)4% c)6% d)One cannot tell.
Calculate the quoted price on June 1, 2011 of the bond outlined below. (Assume that the face value is $100, that the purchase price is $923.19, that the bond interest is paid semiannually, that the bond was originally issues at its face value, that the bond is redeemed for its face value at maturity and that the market rate is compounded semiannually)
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Time Coupon Market Accrued Commission Bonds Total Company Since Last Rate Price Interest per Bond Purchased Price Interest Company 2 9.7 79.75 23 days 2$ $9.55 15 $4
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Time Coupon Market Accrued Commission Bonds Total Company Since Last Rate Price Interest per Bond Purchased Price Interest Company 1 9.25 102.50 78 days $2.05 X $5.50 15 $ 1651 X
North Co. Issued bonds on July 1, 2018 worth $100,000 with a coupon rate of 10% and an effective interest rate of 8%. Interest is paid annually, every July 1, and bonds mature after 5 years. Required: PV of Bonds: Calculation PV of Principal and PV of Interest and give your explanation about your calculation! Make issuance journal and please explain about the journal! Amortization: Calculation Bond Amortization Table and explain the result! Make Interest adjustment, amortization journal, and explain about the journal! Make Interest payment journal, amortization, and explain about the journal! Journalize Redemption at maturity and explain about the journal!

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