Mind Explorers issues bonds with a stated interest rate of 7%, face value of $220,000, and due in 10 years. Interestpayments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculatethe issue price of the bonds. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriatefactor(s) from the tables provided.)Multiple Choice$236,367$205,051$220,000$179,521Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The followinginformation pertains to these securities. The fluctuations in their fair values are not considered permanent.Held-to-MaturitySecurities:ABC Co. BondsTrading Securities:DEF Co. BondsGEH Inc. BondsIJK Inc. BondsAvailable-for-SaleSecurities:LMN Co. BondsFair Value Fair Value Amortized Cost12/31/202012/31/202112/31/2020$372,500$380,000$405,000Multiple ChoiceFair Value12/31/2020$ 53,000$ 52,000$ 49,000Fair Value12/31/2020$138,800Fair Value12/31/2021$ 64,500$ 76,000$ 43,500Fair Value12/31/2021$152,100Cost$ 67,000$ 44,000$ 37,900Cost$145,000Amortized Cost12/31/2021$365,000What total unrealized holding gain would Beresford report in its 2021 income statement relative to its investments inbonds?

Current Price of Bond: The current interest rate is compared to the interest rate that is indicated…

Answered: Mind Explorers issues bonds with a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Complete the below table to calculate the price of a $1 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1): 1. Maturity 10 years, interest paid annually, stated rate 10%, effective (market) rate 12%.2. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%.3. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%.4. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%.5. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%.
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.8%, then the price that this bond trades for will be closest to: OA. $968 OB. $1,129 OC. $807 D. $645
(Bond valuation relationships) Stanley, Inc. issues 15-year $1,000 bonds that pay $90 annually. The market price for the bonds is $1,182. The market's required yield to maturity on a comparable-risk bond is 7 percent. a. What is the value of the bond to you? b. What happens to the value if the market's required yield to maturity on a comparable-risk bond (i) increases to 11 percent or (ii) decreases to 5 percent? c. Under which of the circumstances in part b should you purchase the bond? a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 7 percent? (Round to the nearest cent.) $
Calculate the annual interest that you will receive on the described bond. A $500 Treasury bond with a current yield of 4.2% that is quoted at 107 points The annual interest is $ (Round to the nearest cent as needed.)
Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65, paid semiannually. The market requires an interest rate of 6.7% on these bonds. What is the bond's price? Group of answer choices a)$1143.2 b)$780.2 c)$987.8 d)$1156.5
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
Seaside issues a bond with a stated interest rate of 12%, the face value of $40,000, and due in 8 years. Interest payments are made semi-annually. The market rate for this type of bond is 14%. What is the issue price of the bond?
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 17-year, $1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is $1,105,and the market's required yield to maturity on a comparable-risk bond is 6 percent a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond?
A $27,000 bond with interest at 5.3% payable semi-annually and redeemable at par is bought two years before maturity to yield 6.6% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.
on Assume that you purchase a 30-year stripped bond with a $100,000 face value. The current bond price is $9,937.73 and the yield is 8%. Calculate the interest revenue during the first year of holding the bond. Calculate amounts to nearest dollar, no $. Answer:
s
Cardoza issues bonds with a coupon rate of 7%, face value of $210,000, and maturity in 10 years. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $171,360. $210,000. $195,731. $225,622.

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