On January 1, Kanbe, Inc. issued a 10-year semiannual bond with a face value of $1,225,000 that pays 4.0% interest. On the date ofissue, the market for similar bonds was 7.0% How much was Kanbe able to raise from issuing this bond?For numerical entries, please1. do NOT enter commas2. do NOT enter the dollar symbol: $3. DO enter the percent symbol when it is needed: %4. enter dollar amounts to the nearest cent, for example: 12345.67Please complete the TVM Framework table to compute the amount that Kanbe was able to raise by issuing this bondTime Value of Money (TVM) Framework7.0PMT512n10204.0PVFV typeCPT

Bond price is the sum of interest payments and maturity value discounted at yield to maturity Bond…

Answered: On January 1, Kanbe, Inc. issued a…

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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On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482. This price resulted in a 6% effective-interest rate on the bonds. Martinez uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Prepare the journal entries to record the following transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 125.) 1. 2. 3. 4. No. 1. 2. 3. 4. The issuance of the bonds on January 1, 2025. Accrual of interest and amortization of the premium on December 31, 2025. The payment of interest on January 1, 2026. Accrual of interest and amortization of the premium on December 31, 2026. Date Jan. 1, 2025 Dec. 31, 2025 Jan. 1, 2026 Dec. 31, 2026 Account Titles and…
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not use ai please
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