Sunland Railroad Co. is about to issue $286,000 of 9-year bonds paying an 11% interest rate, with interest payable annually. Thediscount rate for such securities is 12%.Click here to view the factor table.In this case, how much can Sunland expect to receive from the sale of these bonds? (For calculation purposes, use 5 decimal places asdisplayed in the factor table provided. Round answer to 0 decimal places, e.g. 2,525.)Present value of bonds $LA

One kind of security is a bond. Securities are financial tools that signify ownership in a business…

Answered: Sunland Railroad Co. is about to issue…

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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Munabhai
Pharoah Corporation issues $460,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds $
Urmila
Pina Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places, e.g. 58,971.) Issue price of the bonds $
Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par. 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par. 5. Assume that the bonds are sold for $775 each. Prepare the entry to recognize the sale of the 750 bonds. Record issuance of bonds at discount 6. Assume that the bonds are sold for $950 each. Prepare the entry to recognize the sale of the 750 bonds. Record issuance of bonds at premium
Flint Corporation issues $430,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places, e.g. 58,971.) Issue price of the bonds
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) a. 25 years b. 19 years c. 5 year
Current Attempt in Progress × Your answer is incorrect. Marin Inc. issues $2,100,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest fo bonds of similar risk is 9%. Click here to view factor tables. What amount will Marin receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor tabl provided and final answer to O decimal places, e.g. 458,581.)
Sheffield Corporation issues $430,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places, e.g. 58,971) Issue price of the bonds $
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