Hi . I need help with accounting. I'm failing accounting please help me with these questions. Don't just give me the answers. Give me the full explanation otherwise i can't learn.I need help with these questions and they don't show the full solutions. Please tell me how you do this. For the AP-5B how do you get the number 0.6756. These questions are so confusing. If you could also explain and give me examples that would be great!! Example #3:Beta Company issued $4,000,000 of 10-year, 11% bonds on January 4. The Bonds payinterest semiannually on June 30 and December 31. If the current market rate of interest10%, at what price will the bonds sell for?Solution#3:Interest paymentNumber of periodsInterest rate per period 10% / 2 =$4,000,000 x 11% x V2 year =10 years x 2 =$220,000205%$1,507,5602,741,686$4,249,246PV of face amount$4,000,000 x .37689220,000 x 12.46221PV of interestSelling price of bond AP-5B LO 24 10On January 1, 2020, Metro Inc. issued a five-year bond with a face value of $700,000. The bond bears an interestrate of 6% per annum, with the interest paid semi-annually. On January 1, 2020, the market interest rate was 8%.Requireda)Calculate the amount of a bond discount or a bond premium.Present Value of the Principal($700,000 x 0.6756)$472,920Present Value of Future Interest Payments($21,000 x 8.1109)170,329Present Value of the Bond (Total Price)643,249Face Value700,000Discount$56,751282

Discount or Premium on Bond Issue: A premium bond has a coupon rate that is greater than the market…

Answered: On January 1, 2020, Metro Inc. issued 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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Hi . I need help with accounting. I'm failing accounting please help me with these questions. Don't just give me the answers. Give me the full explanation otherwise i can't learn.

I need help with these questions and they don't show the full solutions. Please tell me how you do this. For the AP-5B how do you get the number 0.6756. These questions are so confusing. If you could also explain and give me examples that would be great!!

Example #3:
Beta Company issued $4,000,000 of 10-year, 11% bonds on January 4. The Bonds pay
interest semiannually on June 30 and December 31. If the current market rate of interest
10%, at what price will the bonds sell for?
Solution#3:
Interest payment
Number of periods
Interest rate per period 10% / 2 =
$4,000,000 x 11% x V2 year =
10 years x 2 =
$220,000
20
5%
$1,507,560
2,741,686
$4,249,246
PV of face amount
$4,000,000 x .37689
220,000 x 12.46221
PV of interest
Selling price of bond

AP-5B LO 24 10
On January 1, 2020, Metro Inc. issued a five-year bond with a face value of $700,000. The bond bears an interest
rate of 6% per annum, with the interest paid semi-annually. On January 1, 2020, the market interest rate was 8%.
Required
a)
Calculate the amount of a bond discount or a bond premium.
Present Value of the Principal
($700,000 x 0.6756)
$472,920
Present Value of Future Interest Payments
($21,000 x 8.1109)
170,329
Present Value of the Bond (Total Price)
643,249
Face Value
700,000
Discount
$56,751
282

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