Find the Cost of Bond to the issue. The company issued 10,000 bonds of $1000 each to be redeemed for $1050 after 30 years. The coupon rate on each bond is $60 per year, and tax rate for companies in that province is 30%.

Q: The company owner contributes 100,000, which is invested in a twenty-year bond with a 5% coupon paid…

A: The accounting treatment for each category is as follows: Note: Initial recognition is done on a…

Q: . Bonds issued last year by Gowen Inc. carried a coupon rate of 7%. Bonds issued today by Gowen Inc.…

A: Solution Concept Cost of debt means the cost that the business has to pay on the debt After tax Cost…

Q: You are hired to replace Samson as Finance Manager at Fun-land Corporation. You are given the…

A: Number of bonds = 12,000 Semi-annual coupon payment = $28.5  Time period = 15 years Selling at 95%…

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 10% when the…

A: Bonds are a form of liability or loan taken by the business. Business needs to make regular interest…

Q: Kiss Greetings planned to raise $500,000 by issuing bonds. The bond certificates were printed…

A: In the given case,The bond certificates were printed bearing a stated interest rate of 6%, which was…

Q: Assume that $1 million five-year bonds paying an interest rate of 10% are issued when the market…

A: If rate of interest on the bonds and the market rate of interest are same then bonds are issued at…

Q: (a) Samson told you that the company's pre-tax cost of debt is 5.7%, calculated by annual coupon…

A: Number of bonds = 12,000 Semi-annual coupon payment = $28.5 Time of maturity = $1,000 Corporate tax…

Q: a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b.…

A: Please note that as per the guidelines, only the first three questions a, b and c are to be…

Q: Inter Tech Corporation needed financing to build a new manufacturing plant. On June 30th of this…

A: Price of bond is the present value of coupon payments plus present value of the par value of bond.

Q: Find the Cost of Bond to the issue. The company issued 10,000 bonds of $100 each to be redeemed for…

A: Yield to maturity refers to the cost of bond.

Q: A $10,000 commercial bond that has a 6% bond rate and matures in 5 years can be purchased for…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: The company issues 10.0%, 10-year bonds with a total face amount of $1,000,000. The market interest…

A: A bond is an instrument offered in a debt market that pays the investor a regular set of interest…

Q: Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the…

A: Formula: Total cash flows = Principal + Interest

Q: Treehouse Inc. issued $800,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Bonds are the securities issued by the entity for the purpose of raising funds from the market. It…

Q: The City of State College plans to issue bonds with a par value of $12,000 that will issue 6%…

A: The bonds are issued to raise funds for a fixed period by an issuer and the issuer promises to pay…

Q: Sepia Inc. issued $325,000 bonds that were redeemable in 7 years. They established a sinking fund…

A: A sinking fund is a fund where a debt holder can make periodic payments to for covering the debt at…

Q: (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.2 percent annual…

A: The question is asking for the after-tax cost of debt for Temple-Midland, Inc. on a bond they are…

Q: Find the Cost of Bond to the issue. The company issued 10,000 bonds of $1000 each to be redeemed for…

A: In the given case, we have provided the coupon payment, number of years, tax rate and the face value…

Q: ach problem given, find (a) the present value of the lump-sum payment, (b) the present value of the…

A: The price of bond is the present value of annual interest payments and present value of par value of…

Q: Bayside Inc. sells $5,000,000 of five-year, 10% bonds at the start of the year.  The bonds pay…

A: Value of Bonds=$5,000,000  Coupon rate=10% Years to maturity=5 years Effective yield=9% Bond…

Q: Mini Lop, Inc. paid $350,000 to retire a bond with a face value of $300,000. The note was issued…

A: The carrying amount, also known as the carrying value, is the asset's cost less accrued…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A: Present value of future interest income can be calculated by using the discounting technique.…

Q: A business issued $1,000,000 worth of 10-year bonds in the form of $1,000 units. 8% interest is paid…

A: Bond High-security debt instruments that help businesses raise capital are called bonds. Bonds are…

Q: Acme Organic Potato Chip Corp. sold an issue of 12-year $1,000 par bonds for general corporation…

A: The price of the bond is the value that investors are willing to pay for a bond.

Q: On September 30, Stinky Bank issued 10-year bonds at an annual simple interest rate of 4.25%, with…

A: a) Interest every six months would be Interest = Principal * Rate * Time(years) =$10000*4.25%*6/12…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A: We need to use present value of annuity formula to calculate present value of the stream of interest…

Q: You pay $5600 for a municipal bond. When it matures after 15 years, you receive $11,000 The total…

A: Pay for Municipal Bond  $ 5600 Matures After 15 Years. We received $11000 Total Return calculated as…

Q: A total of 50 bonds is issued by a corporation at ₱ 1,000 face value each. The bonds are to be…

A: Since coupon rate is not given,We are assuming, that the bond is zero coupon. This question is based…

Q: ABC Corp issued a bond for $87,000 at par. The bond will mature in 10 years when the principal will…

A: Bond price implies for the consideration paid by an investor for acquiring bond. In provided case,…

Q: A company has made an investment in government bonds. The bonds will genera an interest income of…

A: SOLUTION- FINANCIAL MANAGEMENT- IT IS THE ACTIVITY CONCERNED WITH PLANNING ,RAISING , CONTROLLING…

Q: he company has made an investment in government bonds. The bonds will generate an interest income of…

A: Present value is calculated by discounting all the future cashflows

Q: deposit

A: The government and the corporation raise finance by issuing bonds. The borrower is obligated to pay…

Q: jiminy's cricket farm issued a 30-year, 7 percent semiannual bond 3 years ago. the bond currently…

A: A bond pays regular equal coupons paid over the maturity of the bond along with par value at  the…

Q: A company issues a P300,000, 10 percent, 20-year bond. The tax rate is 40  percent. What is the…

A: Semiannual interest payment = Face value of Bond x interest rate x no. of months/12 = P300,000 x 10%…

Q: (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.7 percent annual…

A: The annual coupon payment is calculated below

Q: Holiday Brands issued $24 million of 9%, 30-year bonds for $21.5 million. What is the amount of…

A: Bonds are obligation securities issued by governments, districts, or enterprises to raise capital.…

Q: A pharmaceutical company will contract a new loan in the sum of $2,000,000 that is secured by…

A: Here, No. of Bonds is 4,000 Coupon Rate is 8% Payment Period is Semi Annual Maturity Period is 10…

Q: None of these are correct.

A: Yield to maturity is the current interest rate of the bond which is used for discounted the bond's…

Q: a corporation sold an issue of 15 years bonds having a total face value of 12,000,000 for…

A: Face Value = 12,000,000 Coupon Rate = 15%  Interest Rate = 12%  Semi-annual coupon rate  = Coupon…