Determine the market price of a $209,000, ten-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of 10%.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)Click here to view factor tablesMarket price of bond issue $

Bond is the fixed obligation to pay that is issued by government entity and corporations to…

Answered: Determine the market price of a…

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 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...

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Similar questions

Determine the market price of a $100,000, 10-year, 6% (pays interest semiannually) bond issue sold to yield an effective rate of 8%. (Round factor values to 5 decimal places, e.g. 1.25125 and final answer to O decimal places, e.g. 458,582.) Click here to view factor tables Market price of bond issue $
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of 10%. What is the market price?
Calculate the selling price of the following 5-year bond issue: e. # bonds Bond rate of interest Interest payable Market rate of interest Bond maturity (face) value 600 5.8% semi-annually 6.0% $1,000
Determine the price of a $220,000 bond issue under each of the following independent assumptions: Note: Use tables, Excel, or a financial calculator. Round your Intermediate calculations and final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Face value Maturity 1. 220,000 10 years Interest Paid annually Stated Rate Effective Rate Price 11% 11% 2. 220,000 10 years semiannually 11% 12% 3. 220,000 20 years semiannually 12% 12%
Compute the selling price of 8%, 10-year bonds with a par value of $310,000 and semiannual interest payments. The annual market rate for these bonds is 10%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations.
Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Par Value Bond Rate Payable Semi-Annually $9,000 9.5% Time Before Maturity 9 years Yield Rate Conversion Period 9% semi-annually The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Compute the selling price of 12.00%, 15-year bonds with a par value of $440,000 and semiannual interest payments. The annual market rate for these bonds is 10.00%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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 $
Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Par Value $9,000 Bond Rate Payable Semi-Annually 10.5% Time Before Maturity Yield Rate 9 years 11.5% Conversion Period semi-annually The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
s

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