On January 1, 2017, ABC issues a 5-year, $10,000 par value, zero coupon bond. The market...
On January 1, 2017, ABC issues a 5-year, $10,000 par value, zero coupon bond. The market initially prices these bonds at 10% effective rate. On January 1, 2018, ABC buys back the bond at $7,000. What is the gain/loss due to early extinguishment of debt?
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On January 1, 2017, ABC issues a 5-year, $10,000 par value, zero
coupon bond. The market...
On January 1, 2018, ABC & Co. issues convertible bonds with a maturity of 5 years....
On January 1, 2018, ABC & Co. issues convertible bonds with a maturity of 5 years. The par value of the bonds is $400,000, the coupon rate is 6%, and the compounding period is semi-annual with interest paid on June 30th and December 31st. The market prices these bonds using an interest rate (effective rate) of 4% compounded semi-annually. Each $1,000 bond is convertible to 100 shares of ABC & Co. common stock. 1. On July 1, 2018, the company...
On January 1, 2017, MOOSE inc issues a 5 year 8,000,000 par value 8% coupon rate,...
On January 1, 2017, MOOSE inc issues a 5 year 8,000,000 par value 8% coupon rate, compounded semi annually. The market initially prices these bonds at 6% effective rate. Record journal entry on these interest expense on June 30, 2017 and December 31, 2017. Record journal entry on Dec 31,2021 (both interest and redemption).
. The Schüssel Company issues a $900,000 principal, three-year zero-coupon bond on January 1, 2017. The...
. The Schüssel Company issues a $900,000 principal, three-year zero-coupon bond on January 1, 2017. The effective rate is 8% and discounting is semi-annual. a. Calculate the interest expense they will record on June 30, 2017. b. Calculate the net bond payable as of December 31, 2018. c. Calculate the total interest expense over the life of the bond.
ABC Company issues a 25-year bond paying a 6% coupon selling at par. If ABC Company...
ABC Company issues a 25-year bond paying a 6% coupon selling at par. If ABC Company has the option to call the bonds in five years for 105% of par value, what is the bond’s YTC?
Stanford Issues bonds dated January 1, 2017, with a par value of $240,000. The bonds' annual...
Stanford Issues bonds dated January 1, 2017, with a par value of $240,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $222,307. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond Interest expense will be recogned over the...
a) ABC Ltd issues two different bonds, a 5-year semi-annual coupon bond and a 10-year zero...
a) ABC Ltd issues two different bonds, a 5-year semi-annual coupon bond and a 10-year zero coupon bond with the same yield to maturity. Explain which bond is subject to more interest rate risk.
a zero coupon bond has a par value of $10,000 and a current price of 7,000....
a zero coupon bond has a par value of $10,000 and a current price of 7,000. If the bond has 8 years to maturity, what is its after-tax yield to maturity for an investor paying 25% taxes?
i need help Stanford issues bonds dated January 1, 2017, with a par value of $250,000....
i need help
Stanford issues bonds dated January 1, 2017, with a par value of $250,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $231,570. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be...
On January 1, your company issues a 5-year bond with a foce value of $10,000 and...
On January 1, your company issues a 5-year bond with a foce value of $10,000 and a stated interest rate of 6%. The market interest rate is 4%. The issue price of the bond was $10,896. Your company used the effective interest method of amortization. At the end of the first year, your company should Multiple Choice Ο debit interest Expense for $600. debit Premium on Bonds Payable for $16400 and credit interest Payable for $436 00 Ο debt interest...
Edna Company issues a 5 year, 5% face rate $100,000 bond on January 1, 2016, with...
Edna Company issues a 5 year, 5% face rate $100,000 bond on January 1, 2016, with interest payable each December 31. The bond is sold to yield 5.2% annual and the issue costs are $200. Calculate the price at which the bond sold on the market. Calculate the bond’s effective interest rate (including issue costs. Prepare an amortization table covering 2016 and 2017 All of the bonds are retired on July 1, 2017. The price paid reflects a market interest...
. The Schüssel Company issues a $900,000 principal, three-year zero-coupon bond on January 1, 2017. The effective rate is 8% and discounting is semi-annual. a. Calculate the interest expense they will record on June 30, 2017. b. Calculate the net bond payable as of December 31, 2018. c. Calculate the total interest expense over the life of the bond.
Stanford Issues bonds dated January 1, 2017, with a par value of $240,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $222,307. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond Interest expense will be recogned over the...
i need help
Stanford issues bonds dated January 1, 2017, with a par value of $250,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $231,570. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be...
On January 1, your company issues a 5-year bond with a foce value of $10,000 and a stated interest rate of 6%. The market interest rate is 4%. The issue price of the bond was $10,896. Your company used the effective interest method of amortization. At the end of the first year, your company should Multiple Choice Ο debit interest Expense for $600. debit Premium on Bonds Payable for $16400 and credit interest Payable for $436 00 Ο debt interest...
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