On January 1, 7022, Davison Corp. issues $500,000 of 9% 15-year bonds that pay interest annually on December 31* each year. Bonds of similar risk and maturity are paying 7%. How much cash will Davison Corp. pay the bondholders for one annual interest payment? • $35,000 . • $49,651 • $500,000 • 45,000
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- Problem LU – 3 Today Arrow Company issued bonds that will mature to a value of $120,000 in 20 years. Arrow's controller is planning to set up a sinking fund. Interest rates are 6% compounded semiannually. What will Arrow Company have to set aside to meet its obligation in 10 years?Question 24 3 pts On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that pay interest annually on December 31st each year. Bonds of similar risk and maturity are paying 7% How much cash will Whitmore Corp receive in total from the bond issuance? $600,000 $709,297 $503,272 $658,742 Question 25 3 pts On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that pay interest annually on December 31st each year. Bonds of similar risk and maturity are paying 7% How much interest expense will Whitmore Corp recognize on December 31, 2019 when they make the first interest payment?Problem 4 Ryan Company issues a $100,000 on 8/31/Y1, 10%, bond that matures in 5 years. Interest is paid on August 31st of each year. (Don't need to amortize.) How much would you pay to yield: 8% 10% 14%
- < Question 6 of 30 Shah Entertainment Center borrowed money by issuing $6,000,000 of 4% bonds payable at 97.5. Interest is paid semiannually Requirements 1. How much cash did Shah Entertainment Center receive when it issued the bonds payable? 2. How much must Shah Entertainment Center pay back at maturity? 3. How much cash interest will Shah Entertainment Center pay each six months? *** Requirement 1. How much cash did Shah Entertainment Center receive when it issued the bonds payable? Amount of cash Shah Entertainment Center received when the bonds payable were issued = Requirement 2. How much must Shah Entertainment Center pay back at maturity? At maturity, Shah Entertainment Center must pay back Requirement 3. How much cash interest will Shah Entertainment Center pay each six months? Every six months, Shah Entertainment Center will pay interest of 1LO 13.1 On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________. $200,000 $558,438 $2,233,750 $6,701,250Question 1 NewBank started its first day of operations (1 April, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms: Mortgages: 100 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000. Commercial loan: 3-year loan, simple interest paid monthly at 0.75%/month. If required reserves are 8%, what does the bank balance sheets look like? Ignore any loan loss reserves. Question 2 NewBank decides to invest $45 million in 30-day T-bills. The T-bills are currently trading at $4,986.70 (including commissions) for a $5,000 face value instrument. What does the balance sheet look like? (only ans question2 plz)
- Question 1 NewBank started its first day of operations (1 April, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms: Mortgages: 100 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000. Commercial loan: 3-year loan, simple interest paid monthly at 0.75%/month. If required reserves are 8%, what does the bank balance sheets look like? Ignore any loan loss reserves. Question 2 NewBank decides to invest $45 million in 30-day T-bills. The T-bills are currently trading at $4,986.70 (including commissions) for a $5,000 face value instrument. What does the balance sheet look like? Question 3 On the 3rd day of operations (3 April, 2021), deposits fall by $5 million. What does the balance sheet look like? Are there any problems? (only ans question3 plz)Question 1 NewBank started its first day of operations (1 April, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms: Mortgages: 100 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000. Commercial loan: 3-year loan, simple interest paid monthly at 0.75%/month. If required reserves are 8%, what does the bank balance sheets look like? Ignore any loan loss reserves. Question 2 NewBank decides to invest $45 million in 30-day T-bills. The T-bills are currently trading at $4,986.70 (including commissions) for a $5,000 face value instrument. What does the balance sheet look like? Question 3On the 3rd day of operations (3 April, 2021), deposits fall by $5 million. What does the balance sheet look like? Are there any problems? Question 4 To meet any shortfall in the previous question, NewBank will borrow the cash in the…Question 1 NewBank started its first day of operations (1 April, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms: Mortgages: 100 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000. Commercial loan: 3-year loan, simple interest paid monthly at 0.75%/month. If required reserves are 8%, what does the bank balance sheets look like? Ignore any loan loss reserves. Question 2 NewBank decides to invest $45 million in 30-day T-bills. The T-bills are currently trading at $4,986.70 (including commissions) for a $5,000 face value instrument. What does the balance sheet look like? Question 3On the 3rd day of operations (3 April, 2021), deposits fall by $5 million. What does the balance sheet look like? Are there any problems? Question 4 To meet any shortfall in the previous question, NewBank will borrow the cash in the…
- Question 1 NewBank started its first day of operations (1 April, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms: Mortgages: 100 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000. Commercial loan: 3-year loan, simple interest paid monthly at 0.75%/month. If required reserves are 8%, what does the bank balance sheets look like? Ignore any loan loss reserves.QUESTION 50 On 12/31/22, when the market interest rate is 6%, Smith Realty issues $700,000 of 6.25%, 10 year bonds payable. The bonds pay interest semiannually. Smith Realty received $713,234 in cash at issuance. The Bond Interest Expense for the first amortization period at 06/3023 is ? 21,397 20,567 23,722 24,200Question 10 A company issues a $100,000 bond due in 4 years paying 7 percent interest annually at year- end. Assume that the market rate for similar bonds is 11 percent. How you will calculate the present value of bond?
