Take me to the textA company issued $1,140,000 worth of 8-year bonds with a 3% interest rate. Interest is to be paidannually. The bond issue date is January 1, 2018 and the company has a year-end of December 31.Calculate the bond issue price under each market interest rate.Do not enter dollar signs or commas in the input boxes.Round your answers to the nearest whole number.For bond calculations, use the PV tables at the end of Chapter 17 textbook.Market Interest Rate Bond Price2%3%4%$1140000$XX

Par value $1,140,000.00Maturity period8Coupon rate3%Coupon payment per year $34,200.00

Answered: Take me to the text A company issued…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, 2021, a firm issues bonds with a face amount of $1,500,000. The stated rate is 10%, the market rate is 12%, the term is three years and payments are made twice a year, on June 30 and Dec. 31. What is the present value of the bond that the firm records on its books on the issue date? What is the interest expense that the firm records on its books when making the first cash payment to investors on June 30, 2021?
need help with spots that say X
On January 1, 2024, Blossom issued $6,300,000, 10% bonds. Interest is payable semi-annually on June 30 and December 31. The bonds mature on January 1, 2034. The bonds are sold to yield 12%. Click here to view factor table. (a) Calculate the issue price of the bonds. (Round factor values calculations to 5 decimal places, e.g. 2.55555 and finel answer to 0 decimal places, e.g. 25,000.) Issue price of bond Save for Later Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A bond was issued at the beginning of the accounting year (01/02/2018) for $6,000. The bond has a par value of $10,000 and coupon rate of 7% paid semiannually. The yield to maturity on the bond is 14.78% per year compounded semiannually. Make the journal entries on 07/01 (end of first accounting period) to record bond amortization and interest expense based on effective interest method in the appropriate spaces below. Enter answers to the nearest whole number -- no decimal places or "$" signs. Journal entries at the end of the second accounting period. Date Description Description Debit Interest Expense 12/31 UABD Cash Credit
Compute bond proceeds, amortizing premium by interest method, and interest expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $44,000,000 of 5-year, 13% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Compute the following: a. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. c. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. d. The amount of the bond interest expense for the first year. Round your…
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Happy Hollow, LLC issues $50,000 bonds at 20% interest with quarterly interest payments. Bonds have a maturity date in 5 years. At the time of issue, the market rate is 16%. а. Calculate the issue price of the bond b. How much total interest does the bondholder receive over the life of the bond?
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On July 1, Somers Inc. issued $300,000 of 12%, 10-year bonds when the market rate was 14%. The bonds paid interest semi-annually. A. Assuming the bonds sold at 59.55, what was the selling price of the bonds? $ B. Explain why the cash received from selling this bond is different from the $300,000 face value of the bond. Investors can earn a higher rate/lower rate? in other similar bonds so the bond sells at a Premium/discount?
Please I want answer for this question of Multiple Choice
Company E issues $300,000 worth of 7.5% bonds on January 1, 20x2, which will mature on December 31, 20x3. The market rate on the date of issuance is 6%. Interest will be paid semiannually on June 30 and December 31. Calculate the purchase price of the bonds. Does the price make sense? Explain. How will the bond value appear in the newspaper? Record all journal entries necessary from the date of issue until the maturity date. Be sure to show all calculations.

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