Please correct answer and don't use hand raiting The Macaulay's duration of a 10-year, 10% bond with a face value of $1,000 and a market rateof 8%, compounded annually is:a. 10 yearsb. 11 yearsc. 12 yearsd. None of the above

To calculate Macaulay's duration precisely for a bond, we would need to consider the cash flows,…

Answered: The Macaulay's duration of a 10-year,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

See similar textbooks

Similar questions

A S100,000, 5% bond is redeemable at 110% at the end of 15 years, anddividendsarepayableannually. Findthepricetoyield(.06,m=2).
A bond has a face value of 2,000 $ is redeemable in 8 years , and pays interest of 200 $ at the end of each of the 8 years. what should be the maximum purchase price in $ for this bond if MARR = 8 % per year ? Select one: O a. 2,230 O b. 1,850 O c. 2,000 O d. 1,670 O e. 1,487
Wildhorse Co. issued $1150000 of 8%, 5-year bonds at 106, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year? $1212100 $1205200 $1219000 $1225900
At the beginning of current year, Marble Co. issued 10-year bonds with a face amount of P 5,000,000 and a stated interest rate of 8% payable annually at every year - end. The bonds were priced to yield 10%. PV of 1 for 10 periods at 10% 0.3855 PV of an ordinary annuity of 1 for 10 periods at 10% 6.145 1.What is the PV of annual interest payments? 2.What is the total PV of of bonds at time of issuance?
Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in three years if the bond's YTM is 10 percent and interest is paid semiannually. Calculate this bond's duration.
A $200,000 4 year bond was issued for $210,000. The semi-annual amortization of the bond premium using the straight-line method equals $________________
A perpetual bond pays the owner 29,000.0O at the end of each year with the interest rate is fixed at 6.1 %. Solve for Present Value of the perpetual bond.
A 10-year, 6%, $5,000 bond (cash interest payable 3% semiannually) is sold to yield 8% interest. Compute the bond selling price.
A $10,000, five-year bond redeemable at par and bearing interest at 6.5% payable semi-annuallyis purchased at a market price of $10,000 four years and 10 months before maturity.a) Determine the cash price of the bond. Note: use simple interest to calculate accrued interest.
For the issuer of a 10-year term bond amount of amortization using the effective interest method would increase each year if the bond was sold at a:
Cullumber Company issued $510000 of 8%, 5-year bonds at 107, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year? $545700 O $549270 O $542130 O $538560
A S25,000,7% bond redeemable at par with interest payable annually is bought 5.5 years before maturity. Determine the premium or discount and the purchase price of the bond if the bond is purchased to yield (a) 8% compounded annually : b)6% compounded annually The (Round the final answer to the nearest cent as neededRound all intermediate values to six decimal places as needed.)

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

The Macaulay's duration of a 10-year, 10% bond with a face value of $1,000 and a market rate of 8%, compounded annually is: a. 10 years b. 11 years c. 12 years d. None of the above