QS 14-19A (Algo) Computing bond price C2Compute the selling price of 8%, 10-year bonds with a par value of $340,000 and semiannual Interest payments. The annual marketrate for these bonds Is 10%. Use present value Table B.1 and Table B.3 In Appendix B.Note: Round all table values to 4 decimal places, and use the rounded table values In calculations.Cash Flow$340,000 par (maturity) value$13,600 interest paymentPrice of BondTable ValuePresent Value

Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Compute the selling price of 8%, 10-year bonds with a par value of $340,000 and semiannual Interest payments. The annual market rate for these bonds Is 10%. Use present value Table B.1 and Table B.3 In Appendix B. places, and use the rounded table values In calculations. Note: Round all table values to 4 decimal Cash Flow $340,000 par (maturity) value $13,600 interest payment Price of Bond Table Value Present Value

Compute the selling price of 8%, 10-year bonds with a par value of $340,000 and semiannual Interest payments. The annual market rate for these bonds Is 10%. Use present value Table B.1 and Table B.3 In Appendix B. places, and use the rounded table values In calculations. Note: Round all table values to 4 decimal Cash Flow $340,000 par (maturity) value $13,600 interest payment Price of Bond Table Value Present Value

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 64BE: Brief Exercise (Appendix 9A) Bond Issue Price On January 1, 2020, Ruby Inc. issued 3,000 $1,000 par...

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QS 14-19A (Algo) Computing bond price C2 Compute the selling price of 10%, 10-year bonds with a par value of $290,000 and semiannual interest payments. The annual market rate for these bonds is 12%. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) Answer is complete but not entirely correct. Cash Flow $290,000 par (maturity) value $14,500 interest payment Price of Bond Table Value 0.3118 11.4699 $ S Present Value 90,442 166,314 256,756
Exercise 10-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $570,000. The bonds mature in 9 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required Required 2 Compute the price of the bonds as of their issue date. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n = 18 i = 8.0% Table Value Amount Present Value 0.4581 x $570,000 $ 261,117 10.8378 x $ 22,800 = 247,102 $…
Exercise 14-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $610,000. The bonds mature in 9 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1. Table 8.2. Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below.. Requirei 1 Required 2 Compute the price of the bonds as of their issue date. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount.) Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds nw 18 6.0% Answer is complete but not entirely correct. Table Value 0.3503✔ 10.8280 x Amount $610,000 $ 27,450…
Exercise 10-2 (Algo) Recording bond issuance at par, interest payments, and bond maturity LO P1 Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $1,800,000 par value, mature in four years, and pay 10% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded). Answer is complete but not entirely correct. No 1 Date January 01 Cash Bonds payable 2 June 30 Bond interest expense Cash 3 December 31 Bond interest expense Cash General Journal Debit Credit 1,800,000 1,800,000 90,000 90,000 90,000 4 December 31 Bonds payable 1,800,000 Bond interest payable × Accounts payable 1,890,000 O O 90,000 90,000
RCISES i S Exercise 14-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $700,000. The bonds mature in 6 years and pay 6% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (Table B.1 Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n = i= Table Value Amount Required 1 Present Value $ Saved Required 2 > 0
Use the following to answer questions 11 – 15 AL issues 4.0%, 20-year bonds with a face amount of $1,000,000 for $986,529.23. The market interest rate for bonds of similar risk and maturity is 4.1%. Interest is paid annually. 11. $. Determine the interest payment. 12. $ (rounded to nearest dollar). Determine interest expense for the first interest payment. What will happen to interest expense each interest payment? (Increase, decrease, remain constant) 13. What will happen to the bond liability (carrying value) each interest payment? (Increase, decrease, remain constant). 14. How much will the company pay out $ when the bonds mature in 20 years (assume all interest payments have already been paid)? 15.
TABLE 3.9 END-OF-YEAR PAYMENTS Year 1 Year 2 Year 3 Bond B Bond C Bond A Bond A 100 100 100 + 1,000 Consider the four bonds having annual payments as shown in Table 3.9. All of the bonds have a 15% yield. Which bond has the highest price? Bond D Bond B 50 50 50 + 1,000 Bond C 0 0 0 + 1,000 Bond D 0 + 1,000 0 0
Question content area top Part 1 (Bond valuation relationships) A bond of Telink Corporation pays $120 in annual interest, with a $1,000 par value. The bonds mature in 15 years. The market's required yield to maturity on a comparable-risk bond is 10 percent. a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 13 percent or (ii) decreases to 4 percent? c. Interpret your findings in parts a and b. Question content area bottom Part 1 a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 10 percent? $enter your response here (Round to the nearest cent.) Part 2 b. (i) What is the value of the bond if the market's required yield to maturity on a comparable risk bond increases to 13 percent? $enter your response here (Round to the nearest cent.) Part 3 b. (ii) What is the value of the…
Question content area top Part 1 (Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 22 years and pay 7 percent interest annually. If you purchase the bonds for $1,075, what is your yield to maturity? Question content area bottom Part 1 Your yield to maturity on the Abner bonds is enter your response here%. (Round to two decimal places.)
Question content area top Part 1 (Yield to maturity) Fitzgerald's 25-year bonds pay 8 percent interest annually on a $1,000 par value. If the bonds sell at $935, what is the bond's yield to maturity? What would be the yield to maturity if the bonds paid interest semiannually? Explain the difference. Question content area bottom Part 1 a. The bond's yield to maturity if the bond pays interest annually is enter your response here%. (Round to three decimal places.) Part 2 b. The bond's yield to maturity if the bond paid interest semiannually would be enter your response here%. (Round to three decimal places.) Part 3 c. Based on the findings in parts a and b, which of the following statements is correct? (Select the best choice below.) A. Other things being equal, the YTM is higher for a semiannual bond than an annual bond if the bond is selling at a discount. B. Other things being equal, the YTM is the same for both an annual bond…
Instructions Present Value Tables Chart of Accounts Journal Final Questions Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued $60,400,000 of 10-year, 12% bonds at a market (effective) interest rate of 11%, receiving cash of $64,009,069. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be…
QUESTION 38 ABC Inc. plans to issue $500,000 face value bonds with a stated interest rate of 10% and market interest rate of 12%. They will mature in 10 years. Interest will be paid semiannually. At the date of issuance, compute the present value (bond issue price) of the future cash flows. Following are appropriate factors from tables: Table % / n Present Value of $1 Present Value of ordinary annuity of $1 10%/10 .38554 6.14457 12%/10 .32197 5.65022 5%/20 .37689 12.46221 6%/20 .31180 11.46992 $286,748 $155,900 $442,648 $467,455.25