pt 1Exodus Limousine Company has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 40 yearswith annual payments. Use Appendix B and Appendix D.Compute the current price of the bonds if the current yield to maturity is: (Round "PV Factor" to 3 decimal places. Do notround intermediate calculations. Round the final answers to 2 decimal places.)a. 3 percentb. 13 percentpt 2:oPrice of thebond$5Show Transcribed TextĈExodus Limousine Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 30 yearswith annual payments.If the current yield to maturity is 15 percent, what percent of the total bond value does the repayment of principal represent?Use Appendix B and Appendix D. (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Roundthe final answer to 2 decimal places.)Principal repayment

Bond Pricing: The current price of a bond is calculated based on the present value of future cash…

Exodus Limousine Company has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 40 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. 3 percent b. 13 percant Ĉ Price of the bond $ 5 Show Transcribed Text

Exodus Limousine Company has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 40 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. 3 percent b. 13 percant Ĉ Price of the bond $ 5 Show Transcribed Text

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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Requirement 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.) 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%,paid semiannually. The market rate of interest is 12%at issuance. 2. Same bonds payable as in Requirement 1, but the market interest rate is 16%. 3. Same bonds payable as in Requirement 1, but the market interest rate is 8%.
Determining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 8%. c. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 10%. e. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 8%. f. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds…
Problem 5: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of P8,000,000. The bonds mature on December 31, 2026. For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semi-annually on June 30 and December 31. (Use at most, 4 decimal places for PV factors) J. Prepare the journal entries for 2021 K. Compute or provide the answers for the following: 22. Determine the price of the bonds on January 1, 2021. 23. How much is the interest expense for the year ended, December 31, 2021? 24. How much is the interest expense for the year ended, December 31, 2022? 25. What is the carrying amount of the bonds on December 31, 2022?
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Exodus Limousine Company has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 30 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is:(Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) Price of thebond a. 7 percent $ b. 17 percent $
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2. Deccan Corporation issued 10% 1,000,000 bond on January 1.2011 The market rate of interest is 12% Interest is paid semi annual The term of the bond is 5 years. V. How much would an investor pay for this bond? VI. Make Journal entries to record the receipt of cash from the sale of the bond in Deccan Corporations books VII. Amortize the bond discount over the term of bond using a. Straight line Method b. interest rate method VIII. Make Journal entries to record the payment of interest on 31 December 2011.
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Computing Bond Issue Price Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that th bonds' market rate is: a. 8% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ 114,097 Present value of interest payments $ Selling price of bonds LA LA Check $ b. 10% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ Present value of interest payments $ Selling price of bonds $ LA 0 0 h

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