You invest in bonds yielding an interest rate of 1.5 percent, utility stock yielding an interest rate of 3.8 percent, and a bank certificate yielding an interest rate of 7.5 percent. The total interest earned in all three accounts in one year was $4,689.70 dollars. The amount allocated to the bonds was 900 less than the amount allocated to the bank certificate, and the amount allocated to the utility stock was 4 times the amount allocated to the bonds. What was the total amount of money the person had to invest? The totalamount invested vwas sli
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- A corporate bond that you own at the beginning of the year is worth $915. During the year, it pays $53 in interest payments and ends the year valued at $905. What was your dollar return and percent return? (Round "Percent return" to 2 decimal places.) Dollar return Percent returnMedhurst Corporation issued $87,594 in bonds for $98,782. The bonds had a stated rate of 2% and pay interest quarterly. What is the amount of the first interest payment? Round to the nearest penny, two decimals.A corporate bond that you own at the beginning of the year is worth $975. During the year, it pays $35 in interest payments and ends the year valued at $965. What was your dollar return and percent return?
- A Treasury bond that you own at the beginning of the year is worth $1,055. During the year, it pays $35 in interest payments and ends the year valued at $1,065.What was your dollar return and percent return? (Round "Percent return" to 2 decimal places.)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?The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on Bonds Payable account is a debit of $3350. What is the bond's carrying amount?
- 1. On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%.The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of thebonds? Explain why the cash received from selling this bond is different from the $200,000 face value of thebondReynolds Co. Issued $54 million face amount of 5.25% bonds when market interest rates were 4.97% for bonds of similar risk and other characteristics. Required: a. How much Interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars.) b. Were the bonds issued at a premium or discount? c. Will the annual Interest expense on these bonds be more than, equal to, or less than the amount of Interest paid each year? a. Annual interest payment b. Bonds issued C. Annual interest expense will beAssume that three years ago, you purchased a corporate bond that pays 6.50 percent. The face value of the bond was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 7.00 percent. (a) What is the annual dollar amount of interest that you receive from your bond investment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual interest (b) Assuming that comparable bonds are paying 7.00 percent, what is the approximate dollar price for which you could sell your bond? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Approximate bond price
- You purchased 25 corporate bonds for $985.00 each and held them for one year, at which point you sold the bonds for $965.30 each. During the year you received interest payments of $79.80 per bond. Calculate the current yield on the bonds for the year during which you owned them. Report the percentage to 2 decimal places You purchased 25 corporate bonds for $985.00 each and held them for one year, at which point you sold the bonds for $965.30 each. During the year you received interest payments of $79.80 per bond. Calculate the capital gains yield on the bonds for the year during which you owned them.Krystian Inc. issued 8-year bonds with a face value of $100,000 and a stated rate of 5% when the market rate was 7%. Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. NOTE: The requirement is referring to total interest and principal. B. Would an investor be willing to pay more or less than face value for this bond? Less thanJohn issued $5 million of 10% bonds. At the time John issued the bonds, market rate of interest was 11%. Which of the following statement is correct? A. Bonds were issued at a premium. B. Annual interest expense will exceed the company's actual cash payments for interest. C. The carrying value of the bond will decrease as the bond matures D. Annual interest expense will be $500,000