A corporate bond, Aaa credit, with a par value of $1000 is quoted at 94 3/8. What is the cost of the bond?

Q: On part b for the premium on bonds payable, what numbers were multipled to get $3,186.97?

A: Premium on bonds payable is defined as the excess amount paid over the face value. The premium on…

Q: Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return…

A: The Bonds are typically issued at a face value but sometimes they may be issued at a discount  A…

Q: Bonds, may sell at par, at premium or at a discount. When do they sell

A: Premium represents the value more than the par value whereas, discount represents the value lower…

Q: When a bond is issued, its interest rate is based on Select an answer: the average interest rate…

A: A bond is a financial tool that helps organizations like companies or governments raise funds. It's…

Q: Compute the cash proceeds from bond issues under the following terms. For each case, indicate…

A: Step 1:Computation of the cash proceeds from the issuance of the bonds in each case:CaseFace value…

Q: How to record bonds selling at discount, premium, and at par. Why are bonds recorded at discount,…

A: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and discount.…

Q: Bonds are priced as a ____ of par value. a) percent b) multiple

A: Bond is a debt security that represents loan made by investor to borrower generally government or…

Q: Credit is the normal balance of* O Bonds Payable O Long Term Loans O Unearned Revenues O All the…

A: Under  double entry accounting system, Each account has a debit and credit side. The side that…

Q: ond price is not $808.66. What is the price of the bo

A: Price of bond is the present value of coupon payments and present value of par value of bond based…

Q: Consider two bonds. Bond A has a face value of ₱100,000 and a stated rate of 12%. Bond B has a face…

A:

Q: Bond Quotes. Consider a bond with a quote of 98:15-98:27. If you are the buyer of the bond, at what…

A: The bid price of the bond is the price at which a dealer is willing to buy the bond from us and Ask…

Q: Describe a bond issued at Pes :- Explain why uninvestoswould huschase a bond issued at pas in s tead…

A: Note: It is assumed that in the first subpart par has to be written and not per and accordingly the…

Q: what is the yield on a 4-year BBB-rated corporates bond with a liquidity premium of 0.5%?

A: A bond's yield is the rate of return received from the bond's coupon payments. It can be calculated…

Q: When bonds are issued at a discount, the recorded amount of bond interest expense for a given time…

A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…

Q: hen the effective cost of d

A: Cost of debts is the effective rate which is given by a company for paying on its debt.

Q: (a) Determine what is the payment stream of the bond. (b) Determine the effective duration of the…

A: "As per the policy of our company, In case of multiple questions asked then, we are allowed to…

Q: Given that a bond's carrying value is $185,000 and the fair value is $183,000, what is the journal…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: If a company needs 3B, why would they issue a bond for 6B? What are the benefits of issuing 6 vs 3?

A: The benefits of issuing a bond for 6B rather than 3B is that the company can use the extra 3B to…

Q: 10. The bond interest expense reflected on the income statement should reflect an amount based on…

A: The bond interest expense reflected on the income statement should reflect on amount based on the…

Q: When the bond reaches its ______ the company repays the / its _______ maturity date; creditor…

A: Bonds is a fixed income debt instrument issued by a company amd securitize as tradeable asset. Bonds…

Q: Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return…

A: Lets understand the basics. Bond is either issued at par value or at premium or at discount. It can…

Q: The face or par value for bonds is the amount paid to bondholders at maturity and is usually equal…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…

A: given information   face value = $1000 discount price = 950  interest rate = 6%

Q: A bond has a face value of $100,000 and a price of $90,000. The journal entry at the date of…

A: Solution...   Face value = $100,000  Issue price = $90,000

Q: On June 30, 2023, Pharoah Limited issued $3 million of 20-year, 13% bonds for $3,225,689, which…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: Which of the following statements is most correct?     All of the statements are correct. The yield…

A: Bond yields : A bond's yield is the re-visitation of an investor from the bond's coupon (interest)…

Q: Bonds priced at a discount trade ___ their par value, A) above B) at C) below while bonds priced…

A: Bonds are financial instruments issued by governments or companies to raise capital.Bonds may be…

Q: Bonds with a face value of $840000 and a quoted price of 104.25 have a selling price of

A: Quoted price is the last traded price and face value is always considered as 100.

Q: Which accounts are debited and which are credited if a bond issue originally sold at a premium is…

A: Journal entries, also known as journalizing, refer to the systematic recording of financial…

Q: A bond has a conversion price of $12 and a face value of $2,000. The conversion ratio is ?

A: Face Value of Bond = $2,000Conversion Price = $12Face Value of Convertible Security is the nominal…

Q: You find a bond quote online listing a bond's price as "91".  The bond's current price is $_______.

A: Bond quote is generally expressed as a percentage of its face value. Therefore, considering a face…

Q: From page 9-2 of the VLN, what is the first thing you want to identify when approaching a bond…

A: When a firm issues bonds to earn cash, bonds payable are documented. Money market securities and…

Q: Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return.…

A: The comparison must be made between the stated rate of return and market rate of return to decide…

Q: Select the journal entry that represents a bond issued at 102. Select one: Cash Discount on bond…

A: Bonds are issued by the company for raising finance. The interest on bonds is a tax-saving item and…

Q: 1. If a company's bonds are selling at a discount, then Select one: a. The coupon interest rate is…

A: The question is asking about the relationship between the selling price of a company's bonds and the…

Q: A bond has a nominal interest rate of treasury bond rate plus 5%. This same bond requires the entity…

A: A mortgage bond is backed by a mortgage (or a group of mortgages) that is often backed by real…

Q: A bond with a principal of $1,000 O a. will sell for the market determined price. O b. will always…

A: Bonds are corporate debt units issued by firms and securitized as tradeable assets. A bond is…

Q: Bonds with a face value of $648000 and a quoted price of 98.5 have a selling price of

A: Bonds payable are one of the source of finance and is shown as liability. If the interest rate is…

Q: What is the typical relationship among interest rates onthree-month Treasury bills, long-term…

A: Treasury bills are governmental securities which are risk-free whether issued for short term or long…

Q: For a standard corporate bond, when are the following characteristics of the bond determined?

A: The question is asking about the timing of when various characteristics of a standard corporate bond…

Q: Describe. a bond issued at Pes:- Explain why un investos would hurchase a bond issued at pas ins…

A: The face value of a bond or the stock value indicated in the company charter is known as the par…

Q: The interest rate written in the terms of the bond indenture is known as the 14 Select one: O a.…

A: Solution Concept The  rate stated in the bond instrument is called the stated rate Coupon rate means…

Q: From page 9-3 of the VLN, when determining the issue price of a bond, which interest rate would you…

A: Bonds: Bonds are debt instruments that are used by corporations to raise funds.  Since bonds are…

Q: Bonds with a face value of $336000 and a quoted price of 98.5 have a selling price of

A: Given: Face value = $ 336,000 Quoted price = $ 98.5