Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Part II Please select ONE of the problems below and record the proper journal entry for recording the issuance of the bond. Hint: You will need to refer to the Present Value Tables.pdf. Please indicate which scenario you are answering. (a) On January 1, a corporation issued a $1 million, five-year, 10 percent bond that pays interest semiannually. The market interest rate on January 1 was 12 percent.arrow_forwardI need help using the present value of a bond calculator at https://www.thecalculator.co/finance/Bond-Price-Calculator-606.html. Approximate the present value for the following $1,000 bonds. Note: Round answers to 2 decimal places.arrow_forwardConsider the following three bond quotes: a Treasury note quoted at 98.84, a corporate bond quoted at 103.10, and a municipal bond quoted at 101.75. If the Treasury and corporate bonds have a par value of $ 1,000 and the municipal bond has a par value of $5,000, what are the prices of these three bonds in dollars?arrow_forward
- Bonds with a face value of $530000 and a quoted price of 96.25 have a selling price of $508933. O $511450. $508813. O $510125.arrow_forwardBlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Blue followed IFRS. Using 1 factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…arrow_forwardDetermine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your answers to 2 decimal places.) 3.35 percent coupon corporate bond (paid semiannually) 4.10 percent coupon Treasury note (paid semiannually) Corporate zero-coupon bond maturing in 10 years $ $ $ 16.75 20.50 0arrow_forward
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