P 6-21 (similar to)Question HelpYour company currently has $1,000 par, 6.25% coupon bonds with 10 years to maturity and aprice of $1,069. If you want to issue new 10-year coupon bonds at par, what coupon rate doyou need to set? Assume that for both bonds, the next coupon payment is due in exactly sixmonths.You need to set a coupon rate of%. (Round to two decimal places.)Enter your answer in the answer box and then click Check Answer. P6-15 (similar to)Question HelpThe prices of several bonds with face values of $1,000 are summarized in the following table:Bond$978.64$1,041.47$1,146.78$1,000.00PriceFor each bond, state whether it trades at a discount, at par, or at a premium.Bond A is selling at(Select from the drop-down menu.)Click to select your answer(s) and then click Check Answer.

Bond value is the present value of the future payments. Future payments include coupon and face…

Your company currently has $1,000 par, 6.25% coupon bonds with 10 years to maturity and a price of $1,069. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.)

Your company currently has $1,000 par, 6.25% coupon bonds with 10 years to maturity and a price of $1,069. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.)

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 8R: a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it...

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The prices of several bonds with face values of $1,000 are summarized in the following table: Bond A B C D Price $912.12 $1,008.50 $1,195.61 $1,000.00 For each bond, provide an answer for whether it trades at a discount, at par, or at a premium. Bond A trades at (a) (Select from the drop-down menu.)
E? CengageNOWv2| Online teachin x A Login enow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre. O eBook Bond Price United States Steel Corporation's (X) 7.5% bonds due in 2022 were reported as selling for 103.2. Were the bonds selling at a premium or at a discount? Why is United States Steel able to sell its bonds at this price? The bonds were selling at a because the market rate of interest for similar quality bonds was than 7.5%. Previous Next Check My Work 836 AN 12/3/20
1. Calculate the price of a bond using the Excel PV function. Bond Pricing - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In fx Calculate Now Calculation a Calculate Sheet Function Defined Formula Library Names Auditing Options Calculation B14 fe A B D E F G 1 On January 1, Ruiz Company issued bonds as follows: 2 Face Value: 3 Number of Years: 4 Stated Interest Rate: 5 Interest payments per year 6 (Note: the bonds pay interest annually.) $ 500,000 30 7% 7 8 Required: 9 1) Given the different market interest rates below, calculate the following items. 10 Calculate the bond selling price USING THE EXCEL PV FUNCTION (fx). Note: Enter all 11 function arguments as cell references. 12 13 a) Market Interest Rate: 9% 14 Annual Interest Payment: 15 Bond Selling Price: 16 17 b) Market Interest Rate: 5.5% 18 Annual Interest Payment: 19 Bond Selling Price: 20 21 2. Use the Excel IF function to answer either "Premium" or "Discount" to the following items. 22 23 The bond in (a)…
now.com/ilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false < 3. If an amount box does not require an entry, leave it blank. E 2. eBook a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 1. Show Me How On the first day of its fiscal year, Chin Company issued $26,800,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $24,873,499. b. Determine the amount of the bond interest expense for the first year. c. Why was the company able to…
Calculate the value of each bond and discuss whether it sells at par, discount, or premium. (Annual interest rate) O A. Bond Bond Value A B C O B. Bond A B C O C. Bond A B с O D. Bond A B C $1,149.39 Discount $1,000.00 Par $85.60 Premium Bond Value Sells at par/discount/premium Bond Value $1,149.39 Premium $1,000.00 Par $85.60 Discount Sells at par/discount/premium Bond Value Sells at par/discount/premium $1,149.39 Premium $1,000.00 Par $85.60 Premium Sells at par/discount/premium $1,049.39 Premium $1,100.00 Premium $85.60 Discount Bond Par value Coupon interest Years to rate maturity JA B IC $1000 14% $1000 18% $100 10% 120 16 18 Required return 12% 8% 13%
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
The prices of several bonds with face values of $1,000 are summarized in the following table: state whether it trades at a discount, at par, or at a premium. Bond A is selling at (Select from the drop-down menu.) . For each bond,
The prices of several bonds with face values of $1,000 are summarized in the following table For each bond, state whether it trades at a discount, at par, or at a premium. Bond A is selling at ▼ a discount par a premium . (Select from the drop-down menu.)
A bond with a face amount of $12,000 has a current price quote of 107.15. What is thebond’s price?a. $12,107.15b. $1,285.80c. $12,858.00d. $128,580
Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800. 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par.$fill in the blank 23f1fdf81fe3f91_4 5. Assume that the bonds are sold for $625 each. Prepare the entry to recognize the sale of the 750 bonds. Cash fill in the blank 2552a6f29fa5030_2 fill in the blank 2552a6f29fa5030_3 Discount on Bonds Payable fill in the blank 2552a6f29fa5030_5 fill in the blank 2552a6f29fa5030_6 Bonds Payable fill in the blank 2552a6f29fa5030_8 fill in the blank 2552a6f29fa5030_9 Record issuance of bonds at discount 6. Assume that the bonds are sold for $900 each. Prepare the entry to recognize the sale of the 750 bonds. Cash fill in the blank 1d87ca07df94044_2 fill in the blank 1d87ca07df94044_3 Premium on Bonds Payable fill in the blank 1d87ca07df94044_5 fill in the blank…
Question 1 You find a bond quote online listing a bond's price as "100.0". The bond's current price is $ Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is 12.3456, 12.3456%, or $12.3456, you should enter 12.35).
Calculate the accrued interest(in$) and the total purchase price(in$) of the bond, purchase round your answer to the nearest cent? (If you can’t see the market price on my paper it’s 79.75)