E10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO10-2, 10-4,10-5Kalani Corporation is planning to issue bonds with a face value of $508,500 and a coupon rate of 6 percent. The bonds mature in 7years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year (FV of $1.PV of $1. FVA of $1, and PVA of $1)Note: Use appropriate factor(s) from the tables provided.Required:Compute the issue (sales) price on January 1 of this year for each of the following independent cases:a Case A: Market interest rate (annual): 4 percent.b. Case B: Market interest rate (annual). 6 percentc. Case C. Market interest rate (annual): 8.5 percent.Complete this question by entering your answers in the tabs below.Required a Required by Required cCompute the issue (sales) price on January 1 of this year for the following independent case:Case A: Market interest rate (annual): 4 percent. (Round your intermediate calculations and final answer to whole dollars.)

Bond price is computed as present value of periodic interest and maturity amount discounted at…

Answered: E10-4 (Algo) Computing Issue Prices of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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BlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. 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 Blue 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. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
NJN, Inc.issues bonds due in 15 years with a coupon/stated interest rate of 7% and a total face value of $400,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. What is the issue price of the bond (rounded to nearest whole dollar? TVM Tables link (will open in a new window)(opens in new window) Select one: a. $452,259 b. $302,878 c. $400,000 d. $438,849 e. $439,201 Clear my choice
40) Scottie Adams Bird Supplies issued 15% bonds, dated January 1, with a face amount of $250,000 on January 1, 2024. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds on January 1, 20247 Some relevant and irrelevant present value factors: A) $236,141 B) $291,210 C) $263,243 D) $461,881
On July 1, 2020, Most Inc. issued $1,000,000 face value, 8% semiannual coupon bonds maturing in 10 years. The bonds pay interest on June 30 and December 31 of each year. The bonds were initially priced to yield 10% compounded semiannually. The bonds were issued for $875,378. What is the carrying value of these bonds on December 31, 2020 Select one: a. $835,378 b. $879,147 c. $1,000,000 d. $925,239 e. $893,225
MCQ: Legacy Inc. recently issued bonds that mature in 10 years. They have a par value of $1,000 and annual coupon of 6%. The current market interest rate is 8.5%. Assume that the bonds can be recalled at end of year 5 at $1,250. What will be the price of bonds? Select one: a. 833.82 b. 1067.75 c. 1130.95 d. 835.97 e. 582.73
Check my work E10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO10-2, 10-4, 10-5 James Corporation is planning to issue bonds with a face value of $501,000 and a coupon rate of 6 percent. The bonds mature in 7 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 4 percent. Issue price b. Case B: Market interest rate (annual): 6 percent. Issue price tv 19
On January 1, 2024, ABC Corp. issued 54 million of 10 year bonds at an 8%stated interest rate to be paid annually. ABC Corp. issued the bonds for S3, 501, 514 since the market rate of interest was 10% . What is the carryingvalue of the bond that ABC Corp. would report on its December 31, 2024balance sheet? (round to the nearest dollar) S3,531,665S3, 500,000S3,526,438S3,564,832S4,000,000
Please help me. Thankyou.
P10-6 (Algo) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below.] PowerTap Utilities is planning to issue bonds with a face value of $2,300,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 8 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. P10-6 Part 2 2. What amount of interest expense should be recorded on June 30 and December 31 of this year? Note: Round your final answers to nearest whole dollar amount. Interest expense > Answer is complete but not entirely correct. $ June 30 41,988 × $ December 31 43,528

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