7.0% 600m corporate bond issued at a 10% rate paying 2 coupons a year over a 10 year life. Prepare an amortization schedule for the first 3 years of the bond. (round to nearest whole thousand)

A company issued bonds with a par value of $250,000 and a maturity of 25 years. The Bonds pay interest every six months based on a nominal interest rate of 8% per year. If on the date of issuance of the bonds the market rate (yield) is 10%: a. What will be the selling price of the bonds? b. If after 15 years the company retires the bonds, paying the amount of $225,000, how much will the gain or loss on debt retirement? Go back and assume that the market rate is 5.75%. a. What will be the selling price of the bonds? b. Make the journal entry to recognize interest expense in the third six-month period of the bonds. Assume that the bonds do NOT pay periodic interest. a. What will be the selling price of the bonds? b. Make the journal entry to recognize interest expense in the third year of the bonds.

Current price of bond that pays $2 one year from now, payment increases 5% each year forever, discount rate 12%

Bond valuation-Semiannual interest Find the value of a bond maturing in 5 years, with a $1,000 par value and a coupon interest rate of 11% (5.5% paid semiannually) if the required return on similar-risk bonds is 18% annual interest. The present value of the bond is $ (Round to the nearest cent.) C

Bond of $ 1000 par value issued at $996 . Coupon rate 3.8% ,coupon paid at the end of every year. Bond will be repaid at $ 1002 i.e. $ 2 on redemption of the bond. Bond will mature after 5 years. The corporate tax rate is 30%. Calculate cost of bond.

a. An 8 ½%, 25-year, $1,000 bond is presently selling at a yield-to-maturity (YTM) of 9 4%. Assuming annual interest payments, what should you pay for the bond? b. What should you pay if interest is paid semiannually? c. Instead of a 25-year bond, they decide to issue 15-year bonds with annual payments. What should you pay for this bond if the YTM is 9 4%? Explain the differences in prices changes for (3a) and (3c) in terms of maturity. d. You buy an 8%, 15-year, $1,000 bond that pays interest annually when it is selling with a YTM of 7%. Immediately after you buy the bond, the YTM increases to 9%. What was the percentage change in the price of the bond? A bond has a market price that exceeds its face value. What type of bond is this? Describe the relationship between the coupon rate and the YTM. е.