Debt Valuation: Interest-Bearing Debentures.  At the beginning of the year, Marshall Square, Inc. issued $100 million (maturity value) of 20-year debentures. The debentures carry a 4.75 percent annual coupon rate (compounded semi-annually) and interest payments are made semi-annually. The market rate of interest at the time the debentures were issued was 5 percent. Required: 1. Calculate the cost of retiring the Marshall Square bonds after 15 years assuming that the market yield rate is three percent per period (six percent annually) at the time of retirement. Calculate the resulting gain or loss. Where will the gain/loss be reported on the company’s statement of cash flows?

InterTech Corporation needed financing to build a new manufacturing plant. On June 30 of this year, InterTech issued $3,480,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did InterTech record this year for the December 31 payment? Select one: a. $139,200 b. $156,685 c. $92,235 d. None of these are correct. e. $122,980

1.An investment that has a maturity value of $3,400 and is discounted 5 years and 6 months before maturity at 4.80% compounded semi-annually. a. Calculate the discounted value of the investment. $0.00 Round to the nearest cent b. Calculate the amount by which the money is discounted.

An insurance company issued a $90 million one-year, zero- coupon note at 8 percent add-on annual interest (paying one coupon at the end of the year) and used the proceeds plus $10 million in equity to fund a $100 million face value, two-year commercial loan at 10 percent annual interest. Immediately after these transactions were (simultaneously) undertaken, all interest rates went up 1.5 percent. (LG 22-3)   1- What is the market value of the insurance company’s loan investment after the changes in interest rates?   2- What is the duration of the loan investment when it was first issued?   3- Using duration, what is the expected change in the value of the loan if interest rates are predicted to increase to 11.5 percent from the initial 10 percent?   4- What is the market value of the insurance company’s $90 million liability when interest rates rise by 1.5 percent?   5- What is the duration of the insurance company’s liability when it is first issued?   Use excel for solving

kk. Subject Accounting

Give me correct answer with explanation.j

Please answer all questions and show all calculations. Thank you.