GivenToday´s Datefeb-05 Ford Motor Co. Coupon:6.38% Matuirity:02/01/2029 Term to Matuirity24yearsRating:Baa1/BBB- Price: $ 927.87 General Motors Corp. Coupon:8.38% Matuirity:7/15/2033 Term to Matuirity28.5yearsRating:Baa2/BBB- Price: $ 1,061.25 Solution Ford Motor Co.General MotorsSemi-annual YTM Annualized YTM

Here,FM Co.GM Corp.Face Value $ 1,000.00 $ 1,000.00Coupon Rate6.38%8.38%Time to Maturity in…

Answered: Given Today´s Date feb-05 Ford…

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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Remaining Time: 12 minutes, 27 seconds. - Question Completion Status: A Moving to another question will save this response. « Question 5 1 points Save Answe Fatema Company purchased $40,000 of 10% bonds of Silver Co. on January 1, 2016, paying $37,610. The bonds mature January 1, 2026; interest is payable each July 1 and January 1. The discount of $2,390 provides an effective yield of 11%. Fatema Company uses the effective-interest method and holds these bonds for collection. For the year ended December 31, 2016, Fatema Company should report interest revenue from the Silver Co. bonds of. O a. $4,239.2 O b. $4,136.8. Oc. $4,140.9. O d. $4,000. A Moving to another question will save this response. « 9:26 A 20°C Sunny O - d)) ENG
At January 1, 2018, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at maturity), 4%note. The market rate of interest for notes of similar risk is 10%.Required:1. Prepare the journal entry for Brant Cargo to record the purchase of the equipment.2. Prepare the journal entry for Brant Cargo to record the interest at December 31, 2018.3. Prepare the journal entry for Brant Cargo to record the interest at December 31, 2019.
Requ a. Using the present value tables in Chapter 6, calculate the proceeds (issue price) of Learned, Inc.'s, bonds on January 1, 2013, assuming that the bonds were sold to provide a market rate of return to the investor. b. Assume instead that the proceeds were $93,000,000. Use the horizontal model (or write the journal entry) to record the payment of semiannual interest and the related premium amortization on June 30, 2013, assuming that the premium of $3,000,000 is amortized on a straight-line basis. o 0ompound interest method
Excelsior Corporation has the following headings on its December 31, 2019 Balance Sheet:Total Current Assets $200,000Total Assets $500,000Total Current Liabilities $156,500Total Non Current Liabilities $300,000On January 2020 Excelsior sells temporary investments to pay off $48,900 in long term debt Required 1: How much will working capital increase (decrease) by when comparing December 2019 with January 2020? $ Required 2: If no other transaction took place in January 2020, the current ratio at the end of January 2020 is: Required 3: If no other transaction took place in January 2020, the debt to equity ratio at the end of January 2020 is: Required 4: If no other transaction took place in January 2020, the financial leverage in January 2020 is (calculate the Equity Ratio and not the Equity Ratio percentage): Required 5: If last 12 month sales as of January 2020 amount to $480,000, the working capital turnover for the period ended January 31st 2020 is:
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SEE MORE TEXTBOOKS

Given
Today´s Date	feb-05

Ford Motor Co.
Coupon:	6.38%
Matuirity:	02/01/2029
Term to Matuirity	24	years
Rating:	Baa1/BBB-
Price:	$ 927.87

General Motors Corp.
Coupon:	8.38%
Matuirity:	7/15/2033
Term to Matuirity	28.5	years
Rating:	Baa2/BBB-
Price:	$ 1,061.25

Solution
	Ford Motor Co.	General Motors
Semi-annual YTM
Annualized YTM