f. Now assume the date is October 25, 2019. Assume further that a 12%,10-year bond was issued on July 1, 2019, pays interest semiannually (onJanuary 1 and July 1), and sells for $1,100. Use your spreadsheet to findthe bond’s yield.
Q: On July 01, 2019, SALUDO RAW SA'YO SI MAGELLAN SABI NI LOLA CO. received P1,032,880 for P1,000,000…
A: Solution: Interest expense for the six months ended December 31, 2019 = Issue price * 10% *6/12 =…
Q: On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million, dated…
A: GIVEN On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million,…
Q: Today is December 1, 2019. A bond with a coupon rate of 7.6% has an invoice price of $1,088. The…
A: Clean price of the bond is calculated as: Clean Price=Full Price-Accrued Interest Accrued Interest:…
Q: On January 1, 2020, Metro Inc. issued a five-year bond with a face value of $700,000. The bond bears…
A: Discount or Premium on Bond Issue: A premium bond has a coupon rate that is greater than the market…
Q: On March 1, 2020, Jackson issues 5-year bonds, dated January 1, 2020, with a par value of…
A: The suitable option for the given question seems to be "There is insufficient information to…
Q: On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature…
A: Total interest expense for the year = the carrying amount of the bonds × the effective rate (yield)…
Q: On January 1, 2021, XYZ Corp issued 12% bonds dated January 1, 2021, with a face amount of $20…
A: 1. Compute issue price of bonds at January 1, 2021 as shown below: Semi-annual interest rate is…
Q: On February I, 2019, Osborn pie sold 12% bonds having a maturity value of $800,000. The bond yields…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
Q: On January 1, 2020, Swifty Limited paid $561,003.30 for 10% bonds with a maturity value of $540,000.…
A: Journal entries refers to the process of systematic documentation of financial activities of a…
Q: On January 1, 2021, GLITTER Company issued 10% bonds dated January 1, 2021 with a face amount of…
A: Solution a: Computation of bond price Table values are based on: n= 12 i= 7.00%…
Q: On January 1, 2021, Flamengo Co. issued a four-year, $10,000, 7% bond. The interest is payable…
A: A bond is a financial debt security issued by large business organizations or governments. It is…
Q: On July 1, 2021, Glamorous Corporation issued 11% bonds in the face amount of P2,000,000 that mature…
A: Interest = P2,000,000 × 11% = P220,000
Q: A 12% Pl face value bond with interest payable June 30 and December 31, which matures on June 30,…
A: Total cash received by June 30, 2022 = Redemption value of the bonds + Semi-annual interest on the…
Q: On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $52 million, dated…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: On April 1, 2020, BANANA Company purchased 9% bonds with a face value of ₱4,000,000 for ₱3,756,000…
A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…
Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…
A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732
Q: On January 1, 2020, Marigold Company sold 12% bonds having a maturity value of $ 400,000 for $…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.
Q: On January 01, 2019, IDAMAY KO NA RIN PO SI PAPA CO. issued 10-year bonds with a face amount of P1…
A: Solution Chart Values are based on: n= 10 i= 10% Cash Flow Table Value *…
Q: On January 1, 2020, Garner Hot Rods issued $2,000,000 of 6%, 10-year bonds. Interest is payable…
A: Compute coupon payment for six months period as shown below:
Q: It is now January 1, 2019, and Morgan Bush is considering the purchase of an outstanding bond that…
A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…
Q: On January 1, 2020, Johny Industries issued ten-year bonds with a face value of $2,000,000 and a…
A: The bonds are the financial instruments for the business which are used to raise money from the…
Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $730,000. The bonds’ annual…
A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…
Q: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $410,000. Record…
A: Date Particulars Debit Credit Jan 1, 2021 Cash Account Dr. $410000…
Q: On May 1, 2020, a $300,000, ten-year, 14% bond was sold to yield 12% plus accrued interest. The bond…
A: Dirty price of bonds = Clean price of bonds + Accrued interest Basic information Face value of…
Q: Brussels Enterprises issues bond as par dated January 1, 2019 that have a 2,900,000 par value…
A: The question is based on the concept of Journal Entry.
Q: On January 1, 2019, Learned Inc. issued $105 million face amount of 20-year, 14% stated rate bonds…
A:
Q: A savings bond with a face value of 1000 bears interest at 7% payable semi-annually and matures on…
A: Bond Sell at premium or at discount If bond price is trading at a value that higher than face…
Q: On January 1, 2021, BBB Company issued 10% bonds payable dated January 1, 2021 with a face amount of…
A: Present Value of Bond = PV of Coupon Payments + PV of Redemption Value PV of Coupon Payments =…
Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…
A: Determine the price of the bond: Present value of principle amount ($200,000, 4%, 10 years)…
Q: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…
A: Given information Face value of bond = P 8,000,000 Life of bond = 6 years Number of periods = 6 x…
Q: On July 1, 2019, Waterway Industries issued 11% bonds in the face amount of $12500000, which mature…
A: A bond discount is discount on bonds computed when the par value of bond exceeds the price on which…
Q: On January 1, 2021, an investor paid OR291, 000 for bonds with a principal amount of OR300,000. The…
A: The interest income refers to the amount earned by the company on the amount lent aside from the…
Q: On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature…
A: Solution: Bond Amortization Schedule (Partial) Period Cash Paid Interest Expense Discoount…
Q: On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of…
A: Price of the bond: Price of the bond is the present value of the amount to be paid after end of the…
Q: BlueLtd. issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12%…
A:
Q: Stanford issues bonds dated January 1, 2019, with a par value of $250,000. The bonds' annual…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: On January 1, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for…
A: Formula: Amortization of bond premium = Interest payment - Interest expense where, Interest payment…
Q: On January 1, 2021, Mania Enterprises issued 16% bonds dated January 1, 2021, with a face amount of…
A: Bond: Bond is termed as an income instrument which provides fixed rate of interest. It is a type of…
Q: Jan 1, 2020, purchased for $409,686 a 7.5% bond that matures in 5years, when the market interest…
A: Bond is a financial instrument that gives bondholder a legal right of receiving payments on regular…
Q: On January 1, 2019, Bay Company issues bonds with a face value of $850,000 that pay 9% interest…
A:
Q: on january 1, 2019, bay company issues bonds with a face value of $850,000 that pay 9% interest…
A:
Q: On January 1, 2020, XYZ Co. issued 8-year bonds with a face value of $1,500,000 and a stated…
A: formula for price of bond: price of bond=coupon×1-11+rmm×nrm+par1+rmm×n where, r=rate per period m…
Q: The Werner Company issued 10-year bonds on January 1, 2020. The debt has a face value of $800,000…
A: Bond value: Using the bond valuation, you may determine the potential fair value of a given bond by…
Q: On January 1, 2019, a compeny Issued $400,200 of 10-year, 129% bonds. The Interest is payable…
A: Interest payment on June 30 = Face value of bonds x rate of interest x 6/12 = $400200*12%*6/12 =…
Q: Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest…
A: Face Value of Bond = $500000 Coupon Rate = 10% per annum Coupon Amountfor 6 months = 500000*10% /2 =…
Q: On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of…
A: Given, Stated rate = 6% Face value = $100,000,000 Market rate = 7%
Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds' annual…
A: Premium on bonds at the time of issuance = Issue price of bonds - Face value of bonds
Q: On January 1, 2020, Swity Company sold 11% bonds having a maturity value of $700,000 for $726,535,…
A: Interest Expense = Opening Carrying Amount * 10% Premium Amortized = Cash Paid - Interest Expense
Q: Stanford issues bonds dated January 1, 2019, with a par value of $500,000. The bonds’ annual…
A: Bond discount is defined as an amount through which the bond's market prices, which is lower as…
f. Now assume the date is October 25, 2019. Assume further that a 12%,
10-year bond was issued on July 1, 2019, pays interest semiannually (on
January 1 and July 1), and sells for $1,100. Use your spreadsheet to find
the bond’s yield.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 2 images
- Give typing answer with explanation and conclusion 1- Imagine the bond above displayed the following details: $10,000 Matures: January 31, 2030; Interest of $200 payable June 30 and December 31 of each year. Can you calculate the annual effective interest rate for this bond? a)2% b)4% c)6% d)One cannot tell.Assume that a bond is issued with the following characteristics: Date of bonds: January 1, 2023; maturity date: Dec. 31, 2027; face value: $200,000; Coupon interest rate: 10 percent paid semiannually; market interest rate: 12 percent; issue price: $185,280; bond discount is amortized using the effective interest method of amortization. What is the amount of bond discount amortization for the June 30, 2023, adjusting entry? A) $559 B) $1,117 C) $10,000 D) $11,117please solve step by step if using BA caluculater please explain what values use for what. if using excel show the formula A broker receives an order for three bonds: (a) 7% bond (pays interest on March and September 15) maturing on September 15, 2030; (b) 5.5% bond (pays interest on May and November 1) maturing on May 1, 2035; and (c) 10% bond (pays interest on January and July 8) maturing on July 8, 2025. All three bonds pay semi-annual interest and the current market interest rate is 9% (for all three). What prices would the broker quote for each of the three bonds if the sale is settled on May 4, 2022? (a) Show your work. (b) (c) How much accrued interest would the buyer need to pay on each of the bond? Show your work. How much would the buyer actually pay for each of the bond? Show your work.
- Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $750, calculate the interest rate that the bond would yield to a bond buyer. Show all work.North Co. Issued bonds on July 1, 2018 worth $100,000 with a coupon rate of 10% and an effective interest rate of 8%. Interest is paid annually, every July 1, and bonds mature after 5 years. Required: PV of Bonds: Calculation PV of Principal and PV of Interest and give your explanation about your calculation! Make issuance journal and please explain about the journal! Amortization: Calculation Bond Amortization Table and explain the result! Make Interest adjustment, amortization journal, and explain about the journal! Make Interest payment journal, amortization, and explain about the journal! Journalize Redemption at maturity and explain about the journal!Listen Assume that there is a bond that pays $20.00 at the and of year 2, and $105.00 at the end of year 7. It sells at a total =$(20.00+105.00). The Macauley duration of the bond is? Answer with two digits decimal accuracy. Blank Excel Worksheet Your Answer
- On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?From page 9-2 of the VLN, how do you determine the annuity cash flow (the bond interest payment) from an annual bond? Group of answer choices A. Bond payable x stated rate B. Bond liability x stated rate C. Bond payable x market rate D. Bond liability x market rateCalculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your answers to the nearest cent.)
- A4) Finance On August 16, 2012, a bond had a market price of $8,240.66 and accrued interest of $157.95 when the market rate was 8%What is the bond's face value if it matures on May 15, 2033?← The Airfoil Aircraft Company has issued 5% convertible bonds that mature October 1, 2029. Suppose the bonds are issued October 1, 2021, and pay interest each April 1 and October 1. (Click the icon to view the bond data.) Read the requirements. Requirement 1. Assume the bonds are issued at a price of 93.4. Using the straight-line method of amortization for bond discount: a. Calculate interest expense on bonds payable for each semiannual interest payment period. Use two decimal places. (Round intermediary and final calculations to the nearest cent.) The total interest expense each interest period if the bonds are issued at 93.4 isYour answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. 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 Swifty 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.