Exercise 5-21 (Algo) Price of a bond [LO5-9, 5-10]On September 30, 2024, the Techno Corporation issued 8% stated rate bondswith a face amount of $360 million. The bonds mature on September 30, 2044(20 years). The market rate of interest for similar bonds was 10%. Interest is paidsemiannually on March 31 and September 30.Required:Determine the price of the bonds on September 30, 2024.Note: Use tables, Excel, or a financial calculator. Round your final answers tonearest whole dollar amount, not in millions. (FV of $1, PV of $1, FVA of $1, PVAof $1, FVAD of $1 and PVAD of $1)Time values are based on:n =i=Cash FlowInterestPrincipalPrice of bonds$Amount405%9,600,000$Present Value31,195,340

The price of a bond is equal to the sum of the present value of coupon payments and the present…

Answered: On September 30, 2024, the Techno…

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, 2024, Anne Teak Furniture issued $100,000 of 12% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 4 years. The annual market rate for bonds of similar risk and maturity is 14%. What was the issue price of the bonds? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Multiple Choice $89,460 $120,942 $95,460 $94,029
please use P*R*T fomular as well. Thanks
Take me to the text On January 1, 2023, Bootic Inc. issued $3,182,000 worth of 4% redeemable bonds due in 9 years. At the time of issue, the market interest rate was 3% (interest is due annually). Calculate the discount or premium at which the bonds were issued. The company's year end is December 31. Do not enter dollar signs or commas in the input boxes. Round your answer to the nearest whole number. For bond calculations, use the PV tables at the end of Chapter 7 textbook or use a financial calculator. The bond is issued at a: Premium + Premium/Discount: $ Check
On January 1, 2024, Cool Universe issued 10% bonds dated January 1, 2024, with a face amount of $20.1 million. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Determine the price of the bonds on January 1, 2024. 2. Prepare the journal entry to record the bond issuance by Cool on January 1, 2024. 3. Prepare the journal entry to record interest on June 30, 2024, using the straight-line method. 4. Prepare the journal entry to record interest on December 31, 2024, using the straight-line method. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Check n Determine the price of the bonds on January 1, 2024. Note: Enter your answers in whole dollars not in millions (l.e., 1,000,000 not 1). Round your intermediate…
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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You have purchased a property for $950,000 and expect its value to grow at 3 percent compounded annually for 10 years. You plan to sell it at that time hoping to capture your value estimate. In addition, the property is expected to provide a monthly cash flow of $4,000. You expect the monthly cash flow to remain constant over time. What is the expected annual rate of return on this investment given your expectations about its future cash flows?
tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
Please do not give solution in image format ? And Fast answering please and explain proper steps by Step.
Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.
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