Compute what your bonds are worth. Round all calculations to 2 decimals.
Q: 1. Use the present value tables, calculate the issue price and make the journal entry of a $100,000…
A: PLEASE GIVE A LIKE, your response matters “Since you have posted a question with multiple…
Q: On January 1, 2020, Max Co. issued ten-year bonds with a face value of $5,000,000 and a coupon rate…
A: The issue worth of a bond is predicated on the link between the rate that the bond pays and also the…
Q: On February 28, 20X0, Snapper Corp. issues 6%, 20-year bonds payable with a face value of…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: our yield to maturity on the Abner bonds is _____%.(Round to two decimal places.)
A: Information Provided: Years to maturity = 16 Coupon Interest Rate = 12% Bond price = $800 Par Value…
Q: Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a…
A: A bond is a loan the investors give to the company or a business. The company repays the bond with…
Q: Larry's Bank buys 58 bonds of the Puppet House Corp. through a broker. The bonds pay 10 percent…
A: Part A.Characteristics of the bond:Payment frequency = Semi annual, Period = Half year.Periodic…
Q: A well-known industrial firm has issued $990 bonds that carry 4% nominal annual interest paid…
A: Bonds refer to the financial instruments which are used by the financial institutions for raising…
Q: A 10-year, ₱20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding.…
A: Face value= 20,000, Coupon interest rate=8% semi-annually Time period= 10 years Yield to…
Q: ABC Company will issue $5,600,000 in 8%, 10-year bonds when the market rate of interest is 10%.…
A: One of the source of raising the funds by the business entities is issue of debt securities i.e.…
Q: Seaside issues a bond that has a stated interest rate of 12%, face amount of $40,000, and is due in…
A:
Q: Ocean Adventures issues bonds due in 10 years with a stated interest rate of 10% and a face value of…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: You are called Iin as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The…
A: Bond valuation is done through the concepts of prestige value. The current value of the bond is the…
Q: The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years…
A: Yield to maturity Yield to maturity refers to the total rate of return anticipated on a bond if held…
Q: Allington Corp. issues $560,000 of 9% bonds that pay interest semiannually and mature in 10 years.…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Serotta Corporation is planning to issue bonds with a face value of $460,000 and a coupon rate of 8…
A: The question is based on the concept of Financial Instruments. Financial Instruments shall be…
Q: Woodland Company issues bonds with a face value of $375,000 that pay 4% interest semiannually and…
A: First of all we will find the price of the bond with 4% market interest rate. We can find the price…
Q: Roman Destinations issues bonds due in 10 years with a stated interest rate of 5% and a face value…
A: The bonds are the financial instruments of the business that are used to raise the money from the…
Q: Barrett Enterprises issues bonds with a face value of $900,000 on their issue date. The bonds…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: McAllen Corporation is issuing a $20,000,000 20-year bond with a stated interest rate of 10%. This…
A: Bond A bond is basically an interest-bearing loan instrument that is issued by the companies in…
Q: A bond of $40,000 was issued by the Central Bank on August 17, 2012, with a 30-year maturity. The…
A: Bond price refers to the discounted present value of the payments made in the future. It is the…
Q: Navistar Electric issued 1000 debenture bonds 5 years ago with a face value of $5,000 each and a…
A: A Bond is an instrument that represents the loan that is made by the investor to the company and…
Q: The Garraty Company has two bond issues outstanding. Both bonds pay$100 annual interest plus $1,000…
A: A coupon bond is a financial instrument that entails receipt of periodic payments, that is coupon…
Q: Blossom Corporation is about to issue $ 1,260,000 of 10-year bonds that pay a 6% annual interest…
A:
Q: Last year, Sam Morris purchased a $1000 Dynamic Electronics corporate bond with an annual interest…
A: Face Value = 1000 Annual Interest rate = 6.5% Current Market Price of Bond = 900
Q: Ari Goldstein, Inc. issued $500,000 of 7%, 12-year bonds payable on January 1, 2018. The market…
A: Bonds are the fixed income securities used by a corporation to issue debt in market for the purpose…
Q: On January 1, 2015, Michael Corp. issued 300 bonds with a face value of $1,000 each and a face rate…
A: Bond is form of long term debt. It have lower cost than other common stock. The market value of bond…
Q: ABC Corporation’s recently issued bonds paying interest semiannually and maturing in 10 years. The…
A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…
Q: earson Co issue its $140,000 at a price of 94, the stated rate is 6%, the bond term is 4 years, and…
A: Solution: Annual interest payment = Face value of bond * stated rate of interest = 140000 *6% =…
Q: Bushman, Inc., issues $200,000 of 9% bonds that pay interest semiannually and mature in 10 years.…
A: Future value is the value of an invested cash on a particular date which is equivalent to the value…
Q: On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Pearson Co issue its $193,400 at a price of 103, the stated rate is 9%, the bond term is 4 years,…
A: Solution: Annual interest payment on bond = Face value of bond * Annual stated interest rate
Q: Hillside Excursions issues bonds due in 15 years with a stated interest rate of 11% and a face value…
A: Bond: The bond is a debt obligation under which the borrower of the debt is obliged to pay the…
Q: A company has issued 10-year bonds, with a face value of $1,000,000 in 1,000 dollar units. Interest…
A: A Bond is an instrument that represents the loan that is made by the investor to the company and…
Q: Seaside issues a bond with a stated interest rate of 12%, the face value of $40,000, and due in 8…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: Assume that Beach Inc. has an issue of 20-year $1,000 par value bonds that pay 7% interest,…
A: The value of the bond is the current price of the bond. It is the present value of the cash flows…
Q: Energetic Engines is trying to estimate its cost bonds that pay $20 interest every six months. Each…
A: Calculating the value of bond yield. We have,Bond yield = Coupon Payment / Face value of…
Q: James Corporation is planning to issue bonds with a face value of $501,000 and a coupon rate of 6…
A: Solution a: Computation of bond price Table values are based on: n= 14 i= 2.00%…
Q: Use the present value tables to calculate the issue price and make the journal entry of a $100,000…
A: Present value is the value of the future expected/calculated amount as on today. It is calculated as…
Q: Rivera Inc. is considering the issuance of $500,000 face value, ten-year term bonds. The bonds will…
A: Bonds Payable: A bond is a debt instrument, and so it requires its issuing company to pay periodic…
Q: Crane Company is about to issue $390,000 of 6-year bonds paying an 12% interest rate, with interest…
A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…
Q: The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…
A: Par value (FV) = $ 1000 Coupon rate = 6% Coupon amount (C) = 1000*0.06 = $ 60 Years to maturity = 14…
Q: Serotta Corporation is planning to issue bonds with a face value of $460,000 and a coupon rate of 8…
A: Issuance of Bonds: Corporate bond issuance is one method of raising capital for a company. In…
Fold in the Cheese, Inc. is issuing $850000 of 8% 10-year bonds. These bonds will pay semi-annual interest payments. The market interest rate is currently 6%.
Required:
- Compute what your bonds are worth. Round all calculations to 2 decimals.
- Record the sale of the bond with a
journal entry . - Record the journal entry for your first interest payment.
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- Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.North Co. Issued bonds on July 1, 2018 worth $100,000 with a coupon rate of 10% and an effective interest rate of 8%. Interest is paid annually, every July 1, and bonds mature after 5 years. Required: PV of Bonds: Calculation PV of Principal and PV of Interest and give your explanation about your calculation! Make issuance journal and please explain about the journal! Amortization: Calculation Bond Amortization Table and explain the result! Make Interest adjustment, amortization journal, and explain about the journal! Make Interest payment journal, amortization, and explain about the journal! Journalize Redemption at maturity and explain about the journal!tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021
- Take me to the text A company issued $1,140,000 worth of 8-year bonds with a 3% interest rate. Interest is to be paid annually. The bond issue date is January 1, 2018 and the company has a year-end of December 31. Calculate the bond issue price under each market interest rate. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For bond calculations, use the PV tables at the end of Chapter 17 textbook. Market Interest Rate Bond Price 2% 3% 4% $1140000 $ X XMarkway 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 $30.$fill in the blank 23f1fdf81fe3f91_1 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10.$fill in the blank 23f1fdf81fe3f91_2 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par.$fill in the blank 23f1fdf81fe3f91_3 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par.$fill in the blank 23f1fdf81fe3f91_4 5. Assume that the bonds are sold for $625 each. Prepare the entry to recognize the sale of the 750 bonds. Cash fill in the blank 2552a6f29fa5030_2 fill in the blank 2552a6f29fa5030_3 Discount on Bonds Payable fill in the blank 2552a6f29fa5030_5 fill in the blank 2552a6f29fa5030_6 Bonds Payable fill in the blank 2552a6f29fa5030_8 fill…Ocean Adventures issues bonds due in 10 years with a stated interest rate of 10% and a face value of $330,000. Interest payments are made semi-annually. The market rate for this type of bond is 11%. Using a financial calculator or Excel, calculate the issue price of the bonds.
- With this information how would i make a journal entry for this situation Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods), with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for the issuance of the bond and Book the interest payment and amortization on the discount for the bond.SpaceX issues a bond with a stated interest rate of 9%, face value of $185,000, and due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond? (Round final answer to whole dollars) Use the effective interest rate method Record the bond issue. Record the first interest payment on June 30, 2021. Date Account Name Debit Credit 1/1/21 6/30/23On January 1, Nic Inc. issued $100,000 of ten-year, 10% bonds that pay interest semiannually on June 30 and 31st. The bonds are sold to yield 8%. A. Using the information provided in this problem, as well as your time value of money tables to calculate the issue price of the bond. B. Was the bond issued at a premium or a discount, explain your answer.
- For a three year bond of $2,600 at a simple interest rate of 11% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is $ 143. (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)Ocean Adventures issues bonds due in 10 years with a stated interest rate of 12% and a face value of $490,000. Interest payments are made semi-annually. The market rate for this type of bond is 13% Calculate the issue price of the bonds . use excel or a financial calculator..For each of the following three examples, provide the journal entry that the company would make on the date the bonds are issued. Note that you will need to do a present value calculation to determine the cash proceeds from each bond issue. You can round your answer to the nearest dollar. 1. Andersson Inc. issues 8-year bonds with a face value of $50,000,000 and a stated annual interest rate of 6%. The bonds pay interest semiannually on June 30 and December 31. The annual market rate of interest on the date of issue is 8%.