pia Inc. issued bonds for $375,000 that were redeemable in 5 years. They established a sinking fund that was earning 5.81% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of ever

Q: Jan. 1, Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2 Dec. 31, Year 2 June 30, Year 3 Dec.…

A: Bond amortization table is a table prepared by company which shows the amount of interest expenses,…

Q: Chi Tang, a businessperson from Taiwan, deposits 25,000 yuan in a mutual fund with bonds managed by…

A: Compounded semiannually means compounding is twice a year. So, number of periods is doubled and…

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 10% when the…

A: Bonds are a form of liability or loan taken by the business. Business needs to make regular interest…

Q: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay…

A: Bonds are a form of debt or loan taken by the company and interest needs to be paid on bonds on…

Q: Sandhill Co, issued $1,080,000, 9-year bonds. It agreed to make annual deposits of $86,000 to a fund…

A: Sinking fund refers to an amount of fund that should be kept aside for the purpose of paying off the…

Q: Medhurst Corporation issued $87,594 in bonds for $98,782. The bonds had a stated rate of 2% and pay…

A: Interest payment = Face value of bonds*2%*3/12

Q: A company has $200,000 of 10-year bonds payable outstanding. These bonds had a discount of $24,000…

A: Bonds: It is a debt instrument issued by the government or the organisation to the holders.

Q: A woman deposited $ 10,000 into her bank account. The money remained in the account for 10 years.…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: 34. A corporation issues 2000 bonds, each with a face value of $1,000. The annual interest rate is…

A: Lets understand the basics.Bonds can be issued at either at par value or at premium or at discount.…

Q: a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b.…

A: Please note that as per the guidelines, only the first three questions a, b and c are to be…

Q: Medhurst Corporation issued $89,487 in bonds for $91,321. The bonds had a stated rate of 7% and pay…

A: BOND  Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

Q: Cullumber Company issued $1,600,000, 12-year bonds. It agreed to make annual deposits of $82,000 to…

A: A sinking fund is fund in which a particular amount is kept aside that earns compound interest and…

Q: The maturity value of a savings account that belonged to Peach Company was $47,333.50 The interest…

A: Given that: Future value = $47,333.50 Interest rate (First 4 years) = 4% compounded semi annually…

Q: Ivanhoe Company issued $1,180,000, 14-year bonds. It agreed to make annual deposits of $94,000 to a…

A: A sinking fund is a financial method used by businesses or governments to accumulate funds over time…

Q: Blossom Company issued $900,000, 8-year bonds. It agreed to make annual deposits of $72,000 to a…

A: Bonds are issued by governments and corporations when they want to raise money. By buying a bond,…

Q: Sepia Inc. issued bonds for $475,000 that were redeemable in 6 years. They established a sinking…

A: To pay for the future obligation, companies deposit a fixed amount each period so that the amount…

Q: Blossom Company issued $1,340,000, 14-year bonds. It agreed to make annual deposits of $ which will…

A: A sinking fund is an account that is created by an organization, usually the government or a…

Q: On December 31, 2010 Stine Corporation issued $600,000, 8%, 5-year bonds.  The market rate of…

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: Corporation issued $100,000 of 5-year bonds with a stated interest rate of 8%. The bonds pay…

A: Bonds are long term and safe source of finance for the companies and bonds carry the periodic…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…

A:

Q: Alp Bilgin deposits $33.000 in asaving account that pays 9%interest compounded monthly.Four years…

A: The objective of the question is to find out the total amount in the account eight years after the…

Q: Medhurst Corporation issued $86,722 in bonds for $94,389. The bonds had a stated rate of 8% and pay…

A: The quarterly payment on the bond is calculated on the face value of the bonds at the stated rate…

Q: Treehouse Inc. issued $800,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Bonds are the securities issued by the entity for the purpose of raising funds from the market. It…

Q: Sepia Inc. issued $325,000 bonds that were redeemable in 7 years. They established a sinking fund…

A: A sinking fund is a fund where a debt holder can make periodic payments to for covering the debt at…

Q: Oak Branch Inc. issued $860,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Definition: Interest: Amount charged on the borrowed principal amount.

Q: $600.00 was invested in a bank for 5 years. When the deposit was made, the bank was paying the 14%…

A: Invested amount (P) = $ 600 Interest rate for first 3.5 years = 14% Quarterly interest rate (r) =…

Q: Sunland Company issued $1,700,000, 15 year bonds. It arred to make annual depesits of $79,000 to a…

A: The objective of the question is to calculate the amount in the sinking fund at the end of 15 years.…

Q: Moss Co, issued $440,000 of five-year, 12% bonds, with interest payable semiannually, at a market…

A: We have to find the value of the bond today. Quantum and timing of the cash flows emanating form the…

Q: Carla Vista Company issued $1,700,000, 13-year bonds. It agreed to make annual deposits of $79,500…

A: Amount in the Sinking Fund (Future Value of an Ordinary Annuity)Here, we have the annual deposits…

Q: Oak Branch Inc. issued $820,000 of 6%, 10-year bonds when the market rate was 5%. They received…

A: Here in this question, we are required to prepare amortization table for the first three years. When…

Q: An account was opened on January 1, 1999 with a deposit of $12,000. Additional deposits of $100…

A: In compounding there is interest on interest including interest on interest on the principal amount…

Q: City Slicker Corporation pays $55,000 into a bond sinking fund each year for the future redemption…

A: Sinking Fund- It refers to the separate fund which company uses to create to reduce the outstanding…

Q: Ivanhoe Pet Supply Company issued $400,000 of 8 %, 10-year bonds at 102. Interest is paid annually,…

A: Bonds are debt securities issued by an entity to raise money. The bonds are the long-term debt. The…

Q: View Policies Current Attempt in Progress Crane Company issued $920,000, 8-year bonds. It agreed to…

A: Future Value of Annuity = Annual Payment * FV Factor(5%,8 years)Future Value of Annuity =…

Q: Please calulate the Clean Bank's maturity gap.What does the maturity gap imply about the interest…

A: Maturity Gap is the difference between the interest sensitive assets and liabilities with respect to…

Q: A company issues $12 million in term bonds on March 1, Year One, for face value. The bonds pay a…

A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

A: Bond is defined as a debt instrument or debt security. The bond issuer raises capital by issuing…

Characteristics of Bonds