The company has made an investment in government bonds. The bonds will generate an interest income of OMR 18707 each year for 6 years. The interest rate is 12% annually. Compute present value of the stream of interest income for 6 years. Select one: O a. 95619.10 Ob. All the given choices in this question are not correct Oc 4550.02 Od. 58205.10 Oe. 76912.10

The company has made an investment in government bonds. The bonds will generate an interest income of OMR 18707 each year for 6 years. The interest rate is 12% annually. Compute present value of the stream of interest income for 6 years. Select one: O a. 95619.10 Ob. All the given choices in this question are not correct Oc 4550.02 Od. 58205.10 Oe. 76912.10

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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In January 1 20x1 abc company issued a 1000000 10 year bond with a stated interest rate of 9% payable annually every December 31st the market interest rate is 7% the bonds price is 1140160.
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4. Compute the annual cost for interest and redemption of these bonds
Hw.5.
Thompson Distributors sold $50,000 worth of bonds to raise money for a new warehouse. The bonds pay interest annually at 4% for 10 years. The market rate of interest for a similar instrument was 3%; therefore, the bonds sold for a premium at $54,265. a. Record the sale of the bonds. b. Record the first interest payment and the amortization of the bond premium. Round the interest to the nearest dollar. c. Determine the carrying value (book value) of the bonds after the first year. General Journal Date Account Debit Credit a. b.
12.
Qw. 27. On January 1, 2022, Pipestone Corporation issued a four-year, $40,000, 7% bond. The interest is payable annually each December 31. The issue price was $38,672 based on an 8% effective interest rate. Pipestone uses the effective-interest amortization method. The 2023 interest expense is closest to .
At the end of the year, the company purchased as a long-term investment P 10,000, 10% bonds to yield 8% per year. The bonds mature on January 1, five years after, and pay interest semiannually on June 30 and December 31. The present value factors are as follows: Present value of 1 at 4% for 10 periods 0.6756 Present value for an ordinary annuity at 4% for 10 periods 8.11 Present value of 1 at 5% for 10 periods 0.6139 Present value for an ordinary annuity at 5% for 10 periods 7.72 The carrying amount of this investment at year end is
The company has made an investment in government bonds. The bonds will generate an interest income of OMR 20623 each year for 6 years. The interest rate is 12% annually. Compute present value of the stream of interest income for 6 years. Select one: O a. 105412.55 O b. 84789.55 Oc. 64166.55 O d. 5016.04 O e. All the given choices in this question are not correct
A Corporation has a 6%, $500,000 bond issue that originally was issued 5 years ago. There are now eight years remaining on the bond issue, and the market interest rate is 10%. Interest is paid semiannually. Calculate the current market value of the bond issue, using present value tables. Please label all work.
thank you.
On October 1, 2023, Dejour Energy Inc. issued a $697,000, 10.0%, seven-year bond. Interest is to be paid annually each October 1. Dejour Energy Inc. has a November 30 year - end. (Use TABLE 14A.1 and TABLE 14A.2.). Note: Use table values for PV calculations. (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 12.0% on the date of the bond issue. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Part 1 Record the following entries: (Round your intermediate calculations and final answers to the nearest whole dollar.) Issuance of the bonds on October 1, 2023. Adjusting entry to accrue bond interest and discount amortization on November 30, 2023.…

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