Suppose GENERAL MILLS issued 1,250,000 bonds with the par value of $1000 and a coupon rate of 3.8% on June 1, 2021. The bonds include semi-annual coupon payments and are due on May 31, 2031. If the effective interest rate at issuance was 4%, how much capital was the Company able to raise? (in millions; Round your answer to the two decimal places.)
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- Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.23 percent. If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds ______________bondsTrew Company plans to issue bonds with a face value of $904,500 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar.) Determine the issuance price of the bonds assuming an annual market rate of interest of 8.5 percent. I don't know how to get the issuance price.On January 1, 2020, MMM Inc. issues $100,000 face value, 8% semiannual coupon bonds maturing in 10 years for $114,878. The bonds pay interest on June 30 and December 31 of each year. The market initially prices these bonds to yield 6% compounded semiannually. How much interest expense will MMM Inc. report on its income statement for the year ending December 31, 2020? Select one: a. $8,000 b. $7,429 c. $6,876 d. $6,893 e. $4,573
- Cosmos issued a new series of bonds on January 1, 1995. The bonds were sold at par ($1,000), had a 12% coupon, and mature in 30 years, on December 31, 2024. Coupon payments are made semiannually (on June 30 and December 31). What was the YTM on January 1, 1995?You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Inc. (XIC) Kenny Corp. (KС) Williams Co. (WICO) Last Price 94.267 EST $ Vol (000's) 57,369 48,948 43,809 Last Yield Coupon 6.10 719 Maturity Jan 15, 2032 Jan 15, 2029 Jan 15, 2036 7? 6.16 6.98 7? ?? 94.805 What is the yield to maturity for the bond issued by Xenon, Inc.? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturityRosh Corporation is planning to issue bonds with a face value of $860,000 and a coupon rate of 10 percent The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year (EV of $1. PV of $1. FVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate: 10 percent. Insue price b. Case B: Market Interest rate: 8 percent apd anss c. Case C: Market interest rate: 12 percent. IPoue prce
- Exam Corp. is in need of cash. On 1/1/2023 Exam Corp. issues bonds with a $350,000 face value. The bonds have an 7.50% coupon rate. The market rate is 18%. The bonds have a life of 6 years, and are compounded semiannually. At the time of issuance, the price of the bonds is correctly calculated to be $218,420. All answers below can be rounded to the nearest dollar. What is the journal entry Exam Corp. will record on 6/30/23? Dr. Interest Revenue $19,658 Cr. Cash $13,125 Cr. Discount $6,533 Dr. Interest Expense $19,658 Cr. Discount $6,592 Cr. Cash $26,250 Dr. Interest Payable $19,658 Cr. Premium $6,592 Cr. Cash $26,250 Dr. Interest Expense $19,658 Cr. Cash $13,125 Cr. Premium $6,533 Dr. Interest Expense $19,658 Cr. Cash $13,125 Cr. Discount $6,533Suppose GENERAL MILLS issued 1,250,000 bonds with the per value of $1000 and a coupon rute of 3.8% on June 1, 2021 Tha bunds include At par vakar semi-ainual coupon payments and are due on May 31, 2031. If the effective interest rate at issuance was 4%, now much captal was the Company able to raise? in millons Round your answer to the two decimal poces.To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Estimated $ Volume Company (Ticker). Coupon Xenon, Incorporated (XIC) 5.400 Maturity January 15, 2034 Kenny Corporation (KCC) 4.125 Williams Company (WICO) ??? January 15, 2029 January 15, 2031 Last Price 92.685 ?? Last Yield (000s) PP 57,362 3.84 48,941 104.310 4.12 43,802 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Price b. Current yield %