On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 89.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)

On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 89.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...

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On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $ Need Help? Read It
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On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a)What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) 10.7 % (b)What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $
On March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. the purchase price was 87.875 and the commission was $7 per bond. I bonds from this particular company pay interest on February 1 and August 1. A-what is the current yield as a percent of the bond as the purchase date round your answer to one decimal place? (I got 11.07 it was correct) B-what is the total purchase price in dollars of the bonds round your answer to the nearest cent? ( I got $893.85 it was wrong ) C-if Wayne sold the bonds on November 1 for 92.875 what are the proceeds in dollars from the sale round your answer to the nearest cent?( I got 110.1875 it was wrong )
On March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of nine. 7 to 5% the purchase price was 87.875 and the commission was $7 per bond. Bonds from this particular company pay interest on February 1 and August 1. A-what is the current year as a percent of the bottom of the purchase date round your answer to one decimal place? 11.07 is correct B-what is the total purchase price in dollars of the bonds round your answer to the nearest cent? I put 893.85 it’s wrong C-if Wayne sold the bonds on November 1 for 92.875 what are the proceeds in dollars from the sale round your answer to the nearest cent? I put 110.1875 it’s wrong