On January 1, Solofind, Inc. issued a 10-year monthly bond with a face value of $1,760,000 that pays 6.0% interest. On the date ofissue, the market for similar bonds was 8.0%. How much was Solofind 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 Solofind was able to raise by issuing this bond.Time Value of Money (TVM) Framework8.0%с112n10120¡.06.05PVPMT19539.61FV type17600000CPT19,539.61

Bonds are referred to as debt instruments which represents the loans made to the borrower and…

Answered: On January 1, Solofind, 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, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 8 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7.25 percent, so the total proceeds from the bond issue were $101,959. Methodical uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Prepare the journal entry to record the bond issue, interest payments on December 31, 2018 and 2019, interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102.
On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $860 for $89,900. The bonds had a stated rate of 10% and paid interest semi-annually. What is the journal entry to record the issuance of the bonds? If an amount box does not require an entry, leave it blank. Jan. 1 - Select - - Select - - Select - - Select - - Select - - Select -
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