Interest expense = Issue price*Market rate
= 52306*3%*6/12
Interest expense = 785
So answer is c) $785
A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming...
A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a market rate of 3%, the bonds issue for $52,306. Calculate the carrying value of the bonds after the first semiannual interest payment. Multiple Choice o $51,306. o $52,091. o О $49,000. o O S51,521. $51,521.
A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Calculate the issue price of the bonds, assuming a market interest rate of 5% Multiple Choice $47,835. $52,246 $58,983. $47,812.
On January 1, Year 1, a company issues $460,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Required: Assuming the market interest rate on the issue date is 5%, the bonds will issue at $460,000. Record the bond issue on January 1, Year 1, and the first two semiannual interest payments on June 30, Year 1, and December 31, Year 1. 1. Record the bond issue. 2. Record the...
Kingbird Corporation issues $590,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds.
Whispering Corporation issues $560,000 of 8% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%.Compute the issue price of the bonds.
Wildhorse Corporation issues $410,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%, Compute the issue price of the bonds.
Vaughn Corporation issues $430,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds.
Cullumber Corporation issues $550,000 of 9% bonds, due in 9
years, with interest payable semiannually. At the time of issue,
the market rate for such bonds is 10%.
Compute the issue price of the bonds. (Round present
value factor calculations to 5 decimal places, e.g. 1.25124 and the
final answer to 0 decimal places e.g.
58,971.)
Issue price of the bonds
$
Wildhorse Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)
Carla Corporation issues $380,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10% Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places eg. 58,971.) Issue price of the bonds $