On January 1, 2020, $200,000, 4-year,9% bonds were issued. The interest rate in effect when the bonds were issued was 8%. Interest is paid semi-annually on January 1 and July 1. Bond paid in full December 31, 2023. All answers rounded to the nearest dollar. 31) What would be the premium (discount) at which the bond was issued: a) Premium: more than $7,000 b) Premium: less than $7,000 c) Discount: more than $7,000 d) Discount: less than $7,000 e) There is not enough data to determine the premium (discount) 32) What would be the amount of premium (discount) amortized on July 1, 2020? a) $731 b) $760 c) $790 d) $821 e) None of the above 33) What would be the amount of premium (discount) amortized on January 1, 2022? a) $731 b) $760 c) $790 d) $821 e) None of the above
On January 1, 2020, $200,000, 4-year,9% bonds were issued. The interest rate in effect when the bonds were issued was 8%. Interest is paid semi-annually on January 1 and July 1. Bond paid in full December 31, 2023. All answers rounded to the nearest dollar. 31) What would be the premium (discount) at which the bond was issued: a) Premium: more than $7,000 b) Premium: less than $7,000 c) Discount: more than $7,000 d) Discount: less than $7,000 e) There is not enough data to determine the premium (discount) 32) What would be the amount of premium (discount) amortized on July 1, 2020? a) $731 b) $760 c) $790 d) $821 e) None of the above 33) What would be the amount of premium (discount) amortized on January 1, 2022? a) $731 b) $760 c) $790 d) $821 e) None of the above
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
Related questions
Question
can you explain how they got these answers
Transcribed Image Text:Use the following information for questions 31-41
On January 1, 2020, $200,000, 4-year,9% bonds were issued. The interest rate in effect when the bonds
were issued was 8%. Interest is paid semi-annually on January 1 and July 1. Bond paid in full December 31,
2023. All answers rounded to the nearest dollar.
31) What would be the premium (discount) at which the bond was issued:
a) Premium: more than $7,000
b) Premium: less than $7,000
c) Discount: more than $7,000
d) Discount: less than $7,000
e) There is not enough data to determine the premium (discount)
32) What would be the amount of premium (discount) amortized on July 1, 2020?
a) $731
b) $760
c) $790
d) $821
e) None of the above
33) What would be the amount of premium (discount) amortized on January 1, 2022?
a) $731
b) $760
c) $790
d) $821
e) None of the above
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education