On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds fromthis particular company pay interest on February 1 and August 1.(a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.)%(b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.)$(c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)$Need Help? Read It

Bonds are a form of investment which is secured in terms of fixed coupon or interest payments and…

Answered: On March 1, Wayne Michaels bought 10…

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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On March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. the purchase price was 87.875 and the commission was $7 per bond. I bonds from this particular company pay interest on February 1 and August 1. A-what is the current yield as a percent of the bond as the purchase date round your answer to one decimal place? (I got 11.07 it was correct) B-what is the total purchase price in dollars of the bonds round your answer to the nearest cent? ( I got $893.85 it was wrong ) C-if Wayne sold the bonds on November 1 for 92.875 what are the proceeds in dollars from the sale round your answer to the nearest cent?( I got 110.1875 it was wrong )
On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 89.875, and the commission was $7 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) (b) What is the total purchase price (in $) of the bonds? (c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale?
Find the total proceeds (in $) from the sale of 20 bonds with a coupon rate of 6.25 and a current price of 96.975. (Round your answer to the nearest cent.) The commission charge is $4.00 per bond. The date of the transaction is 145 days since the last interest payment. $
Oriole Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.235 percent and a yield to maturity of 7.4 percent. Assume face value is $1,000. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.)
Jordan paid a full price of $1,059.04 each for 77 bonds. The purchase was between coupon dates, and accrued interest was $11.45 per bond. The flat price of each bond is closest to A. $1,047.59. B. $1,059.04. C. $1,070.49. D. $1,099.41.
On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a)What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) 10.7 % (b)What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $
A 9 year bond with maturity value of $4300.02 and a yield rate of 4.9% was sold 18 months before maturity. If the seller earned 6% on the bond over the time that it was held, then for how much did they sell it? Give your answer rounded to the nearest cent
On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%. The purchase price was 89.875, and the commission was $7 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $
On January 1 of this year, Ikuta Company issued a bond with a face value of $115,000 and a coupon rate of 4 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 5 percent. Ikuta uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Complete a bond amortization schedule for all three years of the bond's life. 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a bond amortization schedule for all three years of the bond's life. Note: Round your intermediate calculations and final answers to whole dollars. Date January 01, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 Cash Interest Interest Expense Amortization Book…
A bond, paying semi-annual coupons of $42, is purchased at a discount to yield j2 9%. The book value adjustment in the 8th coupon period is $8.07. What is the purchase price of this bond?
On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%. The purchase price was 87.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a)What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) (c) If Wayne sold the bonds on November 1 for 92.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)

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