mine the price of the bonds at January 1, 2021. re the journal entry to record their issuance by Instaform. me the market rate was 12%. Determine the price of the bonds at January 1, 2021. me the market rate was 12%. Prepare the journal entry to record their issuance by Ins e Broadcourt Electronics purchased the entire issue in a private placement of the bor ne journal entry to record the purchase by Broadcourt. ete this question by entering your answers in the tabs below.
mine the price of the bonds at January 1, 2021. re the journal entry to record their issuance by Instaform. me the market rate was 12%. Determine the price of the bonds at January 1, 2021. me the market rate was 12%. Prepare the journal entry to record their issuance by Ins e Broadcourt Electronics purchased the entire issue in a private placement of the bor ne journal entry to record the purchase by Broadcourt. ete this question by entering your answers in the tabs below.
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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Transcribed Image Text:On January 1, 2021, Instaform, Inc., issued 14% bonds with a face amount of $60 million, dated January 1. The bonds mature in 2040
(20 years). The market yield for bonds of similar risk and maturity is 16%. Interest is paid semiannually. (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.)
Required:
1-a. Determine the price of the bonds at January 1, 2021.
1-b. Prepare the journal entry to record their issuance by Instaform.
2-a. Assume the market rate was 12%. Determine the price of the bonds at January 1, 2021.
2-b. Assume the market rate was 12%. Prepare the journal entry to record their issuance by Instaform.
3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2,
prepare the journal entry to record the purchase by Broadcourt.
Complete this question by entering your answers in the tabs below.
Reg 1A
Req 1B
Req 2A
Req 2B
Req 3
Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.)
Price of the bonds
Req 1B >
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