A corporation sold an issue of 20-year bonds, having a total face value of P10M for P 9.5M. The bonds bear interest at 16% payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposits that will earn 12% compounded semiannually. Compute the annual cost for interest and redemption of these bonds
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4. Compute the annual cost for interest and redemption of these bonds
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- On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments.
- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?A Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds.A Corporation sold an issue of 15-year bonds, having a total face value of P12,000,000 for P11,000,000. The bonds bear interest at 15%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12%, compounded semiannually. Show the cash flow diagram, and compute the annual cost for interest and redemption of these bonds.
- A corporation sold an issue of 20-year bonds, having a total face value of Php 10,000,000, for Php 9,500,000, The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposits that will earn 12% compounded semiannually. Compute the annual cost for interest and redemption of these bonds.A corporation sold an issue of 20 year bonds, having a total face value of P10 Million pesos forP9.5 Million pesos. The bonds bear interest at 16%, payable semiannually. The company wishesto establish a sinking fund for retiring the bond issue and will make semiannual deposits thatwill earn12%, compounded semi annually. Compute the annual cost for interest and redemptionof these bonds.A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for P9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond 1. issue and will make semiannual deposits that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds. 2. A company has issued 10-year bonds, with a face value of P1,000,000 in P1,000 units. Interest at 16% is paid quarterly. If an investor desires to earn 20% nominal interest on P100,0000 worth of these bonds, what would the selling price have to be? 3. A P1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at
- a corporation sold an issue of 15 years bonds having a total face value of 12,000,000 for 11,000,000. the bond bear interest 15% payable semiannually . the company wishes to established a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12% compunded seminuannually. show the cash flow diagram and compute the annual costfor interest and redemption of these bond.Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 12% and the bonds are issued on an interest date. What amount was received for the bonds? (round to nearest dollar) PRESENT VALUE OF $1 If n=5 and interest = 10%, then use the factor 0.62092 %3D But, if n=10 and interest = 6%, then use the factor 0.55839 %3D PRESENT VALUE OF ANNUITY $1 If n=5 and interest = 10%, then use the factor 3.79079 But, if n=10 and interest = 6%, then use the factor 7.36009 %3D O $486,276 O $600,000 O $630,000 O $555,837Oak Branch Inc. issued $100,000 of 5%, 10-year bonds when the market rate was 4%. They received $106,983. Interest was paid semi-annually. Prepare an amortization table for the first three payments. PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Semiannual Interest Period Semiannual Interest Expense Semiannual Interest Payment Amortization of Discount Ending Carrying Value 1 2 3