Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Requirement 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.) 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%,paid semiannually. The market rate of interest is 12%at issuance. 2. Same bonds payable as in Requirement 1, but the market interest rate is 16%. 3. Same bonds payable as in Requirement 1, but the market interest rate is 8%.arrow_forwardDetermining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 8%. c. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 10%. e. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 8%. f. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds…arrow_forwardf7arrow_forward
- Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) Note: Round your answers to 2 decimal places. 3.60 percent coupon corporate bond (paid semiannually) 4.35 percent coupon Treasury note Corporate zero-coupon bond maturing in 10 yearsarrow_forwardExodus Limousine Company has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 30 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is:(Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) Price of thebond a. 7 percent $ b. 17 percent $arrow_forwardvj subject-Accountingarrow_forward
- Please answer fast i give you upvote.arrow_forwardA4arrow_forwardComputing Bond Issue Price Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that th bonds' market rate is: a. 8% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ 114,097 Present value of interest payments $ Selling price of bonds LA LA Check $ b. 10% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ Present value of interest payments $ Selling price of bonds $ LA 0 0 harrow_forward
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