A $1000 face value, 8% bond (interest payable semiannually) has 20 years remaining until maturity (at which time it will be redeemed at face value). The rate of return required by the market on this type of bond is 8% compounded semiannually. What is the market value of this bond today?
Q: i) ii) Tina owns a retail business called Tina Trading. The following balances were extracted from…
A: Tina Trading…
Q: Analyze the following:
A: Financial statements are the statements of the business, that cover every aspect of the business and…
Q: Information on a note receivable: Face amount P800,000 Effective Interest 14% PV of P1 @14%, n= 5…
A: The note is payable after a particular period in a lump sum without any interest payable for each…
Q: A clinic’s records show that the cost of carrying out health checks in the last five accounting…
A: The total cost comprises of variable and fixed costs. The high level method is used to separate the…
Q: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450…
A: The direct labor cost variance represents the difference between the actual labor cost incurred by…
Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…
A: The break even sales are the sales where business earns no profit no loss during the period. Break…
Q: What is the asset turnover for 2021?
A: Introduction:- Ratio analysis used to analysis business performance. It gives idea of company…
Q: At year end,Elliott counted the office supplies on hand,which amounted to $1500.The firm had $900 of…
A: Supplies Expense - Supplies Expense is consider in the income statement only for the utilized…
Q: The following selected accounts and their current balances appear in the ledger of Fernandez Co. at…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Gusion Corporation has provided the following financial data (in thousands of dollars): Total…
A: The dividend per share indicates the amount divided per share, It means how much is the dividend…
Q: 8 The following Trial Balance was extracted from the books of Tom Nik Trading, a wholesaler as at 31…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: The official terms of purchases of National Co. are 2/10, net 30 but generally the company does not…
A: The non free trade credit refers to without a good credit rating, the trade credit might not be…
Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…
A: Number of units to be sold to earn an desired operating income = (Fixed cost + Desired operating…
Q: PT. Manukdadali has $100 maximum in Petty Cash. On June 27, 2022 the Petty Cash of PT. Manukdadali…
A: Cash spend is $92
Q: If the prime cost is 87 000$ and direct labor cost is 52 000$ than direct material would be: O a. 87…
A: The sum total of Direct Material cost and Direct Labor cost used to manufacture a product, is known…
Q: E. Identify which of the following costs of a product manufacturer would be included in inventories:…
A: For a manufacturer, costs which are directly related with the production and manufacturing of the…
Q: balance figures. Assume that all sales were on credit. Net Sales Cost of Goods Sold Gross Profit…
A: In the context of the given question, we are required to compute the cost of goods sold for the year…
Q: Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the…
A: Variance is the result of the amount of expected value and actual results. It can be calculated by…
Q: Requirement 1. Prepare Carlson Software Corp.'s statement of cash flows using the indirect method to…
A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…
Q: 1. How much overhead cost would be assigned to Product J00A using the company's activity-based…
A: Activity-Based Costing An organization's activities can be identified using the activity-based…
Q: Only statements I and II are true.
A: Financial statements refer to the recording of all the transactions related to business and…
Q: How much is the book value per preference share assuming that preference shares are non-cumulative?
A: Book value per share refers to the ratio of total value available for preference shareholder and…
Q: Which of the following would not be considered internal users of accounting data for a company? a.…
A: The company produces accounting data in the form of financial reports and related disclosures. There…
Q: On January 1, 2015, ML Company grants 100 cash share appreciation rights to each of its 500…
A: Number of employees who can exercise their option in 2018 or 2019 = 140+ 150 = 290 Since the…
Q: question 1 (1a)An increase in the provision for doubtful debts will: A increase the net…
A: Hi student Since there are multiple questions, we will answer only first question. Provision for…
Q: (a) Bara Enterprise manufactures product Alpha. The following information is for the year 2021:…
A: Production budget is the statement which is prepared to know the estimated production needed for a…
Q: Gavin invested $42,000 in the Jason and Kelly Partnership for ownership equity of $42,000. Prior to…
A: Admission of New Partner: In the absence of any other agreement, the only way for the business to…
Q: A company bought a machine for P19,500.00. It has an estimated useful life of 20 years, after which…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: 1 3:05 Forrester Company is considering buying new equipment that would decrease monthly fixed costs…
A: Break-Even point in dollars = Fixed cost/Contribution margin ratio
Q: Solaris Company Limited , makers of solar water heaters, uses a perpetual inventory system. The…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: 8 Capital (Drawings 00 Trade Receivables and Trade Payables Sales Revenue Cost of sales Wages…
A: A statement of financial performance is a statement that reflects all the income, revenue, and…
Q: Required information Trey Monson starts a merchandising business on December 1 and enters into the…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using LIFO…
Q: ion to answer the following 4 questions. Accounts payable 20,000 Cash 55,000 Interest Expense…
A: Current assets to those investments or assets bought by a company that can be easily converted into…
Q: On May 1, 2020 Setup Inc, sold an issue of 5%, 1000 bonds dated January 1, 2020, to yield 5%. The…
A: Bonds are an obligation on the entity. These are issued for raising funds from the market. The…
Q: On June 1, 2022 Bedu, Budi, and Bobi were three friends who wanted to form a new firm which would be…
A: Partnership is one of type of business formation where two or more individuals come together and…
Q: Cost of ending inventory b. Calculate the cost of goods sold using the LIFO (en Cost of goods sold
A: LIFO (Last in first out) It is an accounting method to record inventory and finding cost of goods…
Q: ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: kim Co. manufactures different product that can either be sold at the split-off point or processed…
A: In order to make the decision between processed further or selling the product at the split-off…
Q: IFRS are determined by the O a. a. International Auditors' Standards Body. O b. International…
A: Introduction:: IFRS standards are International Financial Reporting Standards. It provides…
Q: National Co.'s average daily payment is P10,000 meanwhile daily collection average P5,000. The…
A: a) Calculation of average daily disbursement float :- Average daily disbursement float = 10,000 x…
Q: The Statement of Cash Flows is prepared instead of the Retained Earnings Statement. Group of answer…
A: Retained Earnings - Retained Earnings is the statement that shows the profit earned by the company…
Q: On January 1, 2015, ML Company grants 100 cash share appreciation rights to each of its 500…
A: As per our guidelines, only 1 question is solved. Here is the solution for question number 2
Q: Accountants refer to an economic event as a
A: The accountant is the person that keeps a record of all transactions of the company. The accountant…
Q: Which of the following inventories would a company ordinarily hold for sale? O a. Work in process.
A: Inventory- An essential current asset for a manufacturing company is its inventory. The tangible…
Q: Units 100 50 80 40 60 120 Cost $10 12 Beginning inventory Purchase (April 3) Sale (April 10)…
A: LIFO is last in first out inventory valuation method which says that inventory which is purchased…
Q: 5B-2. Complete the following table by placing an X in the correct column. Ex. Accounts Receivable 1.…
A: In Accounting, Accounts are classified as: Assets accounts Liabilities accounts Capital accounts…
Q: a servicemember receives reimbursement ➡r moving expenses, how much will the mount be reported to…
A: Moving expenses : These are the expenses incurred when the employees are allowed by the employer to…
Q: A company's bank statement shows $715 direct debits and $353 investment income not recorded in the…
A: Bank reconciliation statement: The bank reconciliation statement (BRS) is prepared to reconcile the…
Q: Q2 The following was extracted from the accounting records of a trader on 28 February 2015:…
A: Ratio analysis is very important technique of decision making. Under this several ratios are…
Q: explain how cultural influenced the accountants’ accounting values. What are the cultural dimensions…
A: In the year 1980, Hafostede published his Culture’s Consequences: International Differences in Work…
3
A $1000 face value, 8% bond (interest payable semiannually) has 20 years remaining until maturity (at which time it will be redeemed at face value). The
Step by step
Solved in 2 steps
- P1000.00 face-value bond pays dividends of P110.00 at the end of each year. If the bond matures in 20 years, what is the approximate bond value at an investment rate of 12% compounded annually? (Ans. P925.00)A $5,000 face value strip bond has 12 years remaining until maturity. If the market rate of return is 4.00% compounded semiannually, what is the fair market value of the bond? Your Answer: Answer5. A bond promises to pay the bondholder equal payments of P6,000 in six-month intervals for 30 years. If the face amount is P450,000, what is the fair price of the bond? Assume that the market rate is 2% compounded annually.
- What is the present value of a 10-year bond that has 4 years left-to-maturity (N), 7% annual required rate (I/Y) and 8% annual payment (PMT)? (Note: assume future value, FV, is $1000).What is the present value (i.e., price) today of a bond that will pay its owner \$1,000,000$1,000,000 five years from today if the discount rate is 4\%4% per annum?Suppose a $4,500 bond will pay you $325 at the end of each quarter until the face value of the bond ($4,500) is repaid at maturity. What is the fair market value of the bond if it matures in 6 years and the market rate of return is 6.1% compounded quarterly? $9,620.42 $11,090.01 $10,991.02 $9,719.40
- Q4: Consider a bond paying a coupon rate of 10% per year semi-annually when the market interest rate is only 4% per half-year. The bond has three years until maturity. This initial payment is $1000. A: What is find the bond’s price today and 6 months time after the next coupon is paid?the following features: • Coupon rate of interest (paid annually): 10 percent • Principal: $1,000 • Term to maturity: 8 years a. What will the holder receive when the bond matures? |-Select- b. If the current rate of interest on comparable debt is 7 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Would you expect the firm to call this bond? Why? -Select- v, since the bond is selling for a-Select- v. c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for eight years if the funds earn 7 percent annually and there is $80 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar.6. A 25,000 5% bond with coupons payable semi-annually is redeemable at 97% at the endof 10 years. If the market price is 102, what is the yield rate compounded semi-annually?(Yield or Investment Rate)
- A 50,000$ bond has a maturity date of 6 years. the bond interest rate is 6% per annum payable semi-annually. At a market interest rate of 4% per annum payable semi-annually, the present value of the bond is approximately: exact value please!Q) An $6,000 face-value bond matures in four (4) years and pays 6% per year payable Semiannually An investor wants a 10% return per year compounded Semiannually. How much should the investor pay for the bond? Explain it correctly.a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond for 25 years until it matured with a value $1000? a. Rate of return____% b. Suppose under the terms of thebond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until the date. How much would the bond be worth at that time? b. Bond value_____ c. In 2024 instead of cashing in the bond for its then current value you decide to hold the bond until it mature in 2043. What annual rate of return will you earn over the last 19 years? c. Rate of return___%