A bond issue of 4%, 8-year bonds with a face value of $43,000 with interest payable annually on January 1. Market interest rate is 6%. What is the present value of the bonds? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answers to O decimal places (e.g., 5,275).) Click here to view the factor table. Present value of interest payments Present value of principal Present value of the bonds $ +A
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- A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?A bond issue of 4%, 8-year bonds with a face value of $43,000 with interest payable annually on January 1. Market interest rate is 6%. What is the present value of the bonds? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answers to O decimal places (e.g., 5,275).) Click here to view the factor table. Present value of interest payments $ Present value of principal $ Present value of the bonds $ 69Your 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.
- On January 1, Ruiz Company issued bonds as follows: Face Value: $500,000 Number of Years: 15 Stated Interest Rate: 7% Interest payments per year 2 Question: 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the bottom of this worksheet). Note: Rounding is not required. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1.)5 On January 1, Ruiz Company issued bonds as follows: Face Value: Number of Years: Stated Interest Rate: Interest payments per year 7 B 9 0 1 2 AWN IC $500,000 a) Required: 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the botto this worksheet). Note: Rounding is not required. 15 7% 2 Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: Bond Selling Price: Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: = Bond Selling Price: 9% $17,500 133,500.01 285,055.55 418,555.56 6.00% $17,500 205,993.38 5343,007.72 $549,001.10 +Calculate the selling price of the following 5-year bond issue: e. # bonds Bond rate of interest Interest payable Market rate of interest Bond maturity (face) value 600 5.8% semi-annually 6.0% $1,000
- 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, 2021Knowledge Check A bond issue of 6%, 7-year bonds with a face value of $35,500 with interest payable annually on January 1. Market interest rate is 8%. What is the present value of the bonds? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answers to O decimal places (e.g., 5,275).) Click here to view the factor table. Present value of interest payments $ Present value of principal $ Present value of the bonds $The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. One-Year Bond Rate 2.00% 3.00% 4.00% 7.00% 10.00% 11 =% 21 = 131 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 141 151 = = = Year 1 2 3 4 5 % % % % Multiyear Bond Rate 2.00% 3.00% 6.00% 8.00% 11.00%
- 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.)Use the following to answer questions 8-10 (Round answers to the nearest dollar) The company issues 9%, 10-year bonds with a total face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 9%. Interest is paid semiannually. What is the issue price of the bond? When the company records the 2nd interest payment, how much will the company record for 8. $ 9. $ interest expense? 10. $ . What is the bond liability (carrying amount) after the 2nd interest payment?Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your answers to 2 decimal places.) 1. 3 % percent coupon corporate bond (paid semiannually): 2. 4.25 percent coupon Treasury note (paid semiannually):
