B9Company D10 Redeemable bonds123-416171849505152Number of bonds issuedMarket value per bondCoupon rateNumber of years until redemptionRedemption valuePart (b)17,500£105.007.0%3at parPlease complete the following for the redeemable bondsNumber of yearsInterest per bond (£)Market value per bond (£)Redemption value per bond (£)Tax rateKdMVd (£)37.00-105.0025.00%

Bonds are source of the investment and finance and bonds are paid annual coupon payments and par…

Company D Redeemable bonds Number of bonds issued Market value per bond Coupon rate Number of years until redemption Redemption value + 17,500 £105.00 7.0% 3 at par Please complete the following for the redeemable bone Number of years Interest per bond (£) Market value per bond (£) Redemption value per bond (£) Tax rate Kd MVd (£) 3 7.00 -105.00 25.00%

Company D Redeemable bonds Number of bonds issued Market value per bond Coupon rate Number of years until redemption Redemption value + 17,500 £105.00 7.0% 3 at par Please complete the following for the redeemable bone Number of years Interest per bond (£) Market value per bond (£) Redemption value per bond (£) Tax rate Kd MVd (£) 3 7.00 -105.00 25.00%

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter10: Long-term Liabilities

Section: Chapter Questions

Problem 10.1E

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Question

B
9
Company D
10 Redeemable bonds
1
2
3
-4
16
17
18
49
50
51
52
Number of bonds issued
Market value per bond
Coupon rate
Number of years until redemption
Redemption value
Part (b)
17,500
£105.00
7.0%
3
at par
Please complete the following for the redeemable bonds
Number of years
Interest per bond (£)
Market value per bond (£)
Redemption value per bond (£)
Tax rate
Kd
MVd (£)
3
7.00
-105.00
25.00%

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