General accounting On October 5, 2015, you purchase a $10,000 T-note that matureson August 15, 2027 (settlement occurs two days after purchase, soyou receive actual ownership of the bond on October 7, 2015). Thecoupon rate on the T-note is 4.390 percent and the current pricequoted on the bond is 105.71875 percent. The last couponpayment occurred on May 15, 2015 (145 days before settlement),and the next coupon payment will be paid on November 15, 2015(39 days from settlement).a. Calculate the accrued interest due to the seller from the buyer atsettlement. (Do not round intermediate calculations. Round youranswer to 2 decimal places.)b. Calculate the dirty price of this transaction. (Do not roundintermediate calculations. Round your answer to 2 decimal places.)

Step 1: Define Accrued InterestThe term accrued interest refers to the amount of interest owed since…

Answered: On October 5, 2015, you purchase a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

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Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 6P

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A $50,000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August 1, 2033. The bond is sold on the primary market on December 10, 2013, to yield 5.8% compounded semi-annually. Determine the amount of discount or premium on the sale of the bond. ASAP Thanks Please give me answer without using Excel. I will really upvote.
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On December 31, 2024, when the market interest rate is 8%, McMann Realty issues $700,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. (Round all currency amounts to the nearest whole dollar) (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) The present value of the bonds at issuance amounts to (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) EXE
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Terra Ccompany issued a $300,000, 7.50%, 10-year bond on June 1, 2015. Additional information on the bond follows: Bond Date: January 1, 2015 December 31, 2024 Maturity Date: Yield (Market) Rate: Interest Payment Date:: Terra's year end: Required: Round calculations to the nearest dollar a) Calculate the present value of the bond assuming that it had been issued on January 1, 2015. Show calculations/keystrokes. 8% Interest is paid annually on December 31 of each year September 30 b) Prepare a bond amortization table from January 1, 2015 until December 31, 2018. Show each annual interest payment. c) Calculate the total amount of cash received by Terra on June 1, 2015, reflecting the fact the bond was issued on June 1, 2015. Make the journal entry to record the bond issue on June 1, 2015.
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