Revise your worksheet assumptions as indicated below and then answer the questions that folllow:Face amountStated rateNumber of yearsMarket rateⒸ DiscountO PremiumRequired:1. Was the bond issued at a discount or a premium?Date$3,050,0002. Complete the first four rows of the amortization schedule. (Round your answers to 2 decimal places.)June 30, 2021December 31, 2021June 30, 2022December 31, 20228%109%Cash PaidInterest Change in CarryingExpenseValueCarrying Value

Maturity Value = $3,050,000Stated Rate = 4% semiannualPeriods = 20 semiannual periodsMarket Rate =…

Revise your worksheet assumptions as indicated below and then answer the questions that folllow: Face amount Stated rate Number of years Market rate $3,050,000 Discount Premium 8% 10 9% Required: 1. Was the bond issued at a discount or a premium? 2. Complete the first four rows of the amortization schodulo (Pound your answers to 2 decimal places!

Revise your worksheet assumptions as indicated below and then answer the questions that folllow: Face amount Stated rate Number of years Market rate $3,050,000 Discount Premium 8% 10 9% Required: 1. Was the bond issued at a discount or a premium? 2. Complete the first four rows of the amortization schodulo (Pound your answers to 2 decimal places!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total amount due at time t. Round answer to the nearest cent. P=$900, r=6%, t=2 months
Assume that you must estimate what the future value will be two years from today using the future value of 1 table. (PV of $1, EV of $1. PVA of $1, and FVA of $1) Which interest rate column and number-of-periods row do you use when working with the following rates? (Round percentage answers to 2 decimal places.) Answer is complete but not entirely correct. Number of Periods 1. 12% annual rate, compounded annually 2.8% annual rate, compounded semiannually 3. 12% annual rate, compounded quarterly 4. 12% annual rate, compounded monthly Interest Rate 12.00 2.00 3.00 1.00 % % % % 2 80 24
Interest Expense Discount on Bonds Payable v Cash v Feedback V Check My Work The straight-line method of amortization provides equal amounts of amortization over the life of the bond. 3. Determine the total interest expense for 20Y1. Round to the nearest dollar. $ 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? Yes 5. Compute the price of $5,946,703 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount $ Present value of the semiannual interest payments Price received for the bonds 2$ 00
What would you pay for a $180,000 debenture bond that matures in 15 years and pays $9,000 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay
Compute the future value in year 9 of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 using a 10 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
The interest rate on one-year Treasury bonds is 0.8 percent, the rate on two-year T-bonds is 0.9 percent, and the rate on three-year T-bonds is 1.0 percent. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place. % Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place. %
For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Annuity Payment $ 2,000 $ 1,280 $ 11,580 30,150 69 $ Years 7 17 25 Interest Rate 9 % 8 10 12
Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.) n = 3; i = 6% n = 6; i = 3% Future value of 1 1.19102 1.19405 Present value of 1 .83962 .83748 Future value of an annuity 3.18360 6.46841 Present value of an annuity 2.67301 5.41719 Redlands Inc. makes semiannual deposits of $2,000 each June 30 and December 31 each year, beginning in 2020. The amount of money Redlands will have on December 31, 2022 immediately after the sixth and final deposit is $
Find the effective yield on a discount loan with the given discount rate r and the time. (Round your answer to two decimal places.) r = 2%, 2 months
Suppose that the interest rate is 5 percent. Instructions: Enter your answers rounded to 2 decimal places. a. What is the future value of $100 six years from now? $ How much of the future value is total interest? $ b. By how much would total interest be greater at an interest rate of 7 percent than at an interest rate of 5 percent?
Find the amount (in $) of interest and the maturity value of the loans. Use the formula MV = P + I to find the maturity value. Principal Rate (%) Time Interest Maturity Value $97,000 8 1 4 4 1 2 years $ $
Solve for the unknown interest rate in each of the following: Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Present Value 730 920 16,500 71,800 Years 5 6 17 20 Interest Rate % % % % Future Value $ 1,411 1,748 143,332 315,815