Homework Answers
Bond is a fixed income security in which issuer promises pay a series of interest payment and repay the principle on maturity to the investor. When the bond is issued above the face value, then the bonds were issued at premium. When the bond is issued below the face value, then the bonds were issued at discount.
| a | Premium | $2,205 | [($63000/100x103.5)-$63000] |
| b | Discount | $4,095 | [$91000-$91000/100x95.5)] |
| c | Premium | $5,940 | [($198000/100x103)-$198000] |
| d | Discount | $3,260 | [$163000-$163000/100x98)] |
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ework Saved Help Soy Exercise 7-18 Determining the amount of bond premiums and discounts LO 7-8,...
For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round your inter...
For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round your intermediate calculations.) a. Gray Co. issued $58,000 of 6 percent bonds at 101 1/2 $_______ Discount or Premium? b. Bush, Inc. issued $81,000 of 10-year, 6 percent bonds at 95 1/2 $_______ Discount or Premium? c. Oak, Inc. issued $184,000 of 20-year, 6 percent bonds at 102 $_______ Discount or premium? d. Willow Co. issued $160,000 of 15-year, 7 percent...
ework Saved Help Save & Che Exercise 8-9 Cash dividends for preferred and common shareholders LO...
ework Saved Help Save & Che Exercise 8-9 Cash dividends for preferred and common shareholders LO 8-3 Weaver Corporation had the following stock issued and outstanding at January 1, 2018: 1. 62,000 shares of $4 par common stock. 2.5,500 shares of $110 par, 6 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 5,500 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid...
Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount
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Exercise 9-48 (Algorithmic) Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is...
Exercise 9-48 (Algorithmic)
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.
1. Calculate how much Markway is able to borrow
if each bond is sold at a premium of $30.
$
2. Calculate how much Markway is able to borrow
if each bond is sold at a discount of $10.
$
3. Calculate how much Markway is able to borrow
if each...
Exercise 10-17A Straight-line amortization of a bond premium LO 10-5 Stuart Company issued bonds with a...
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Questions 7 & 8 Use the Same Information 7. A company issues $ 16,800,000, 5.8%, 20-year...
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1) Studley Company issued a five-year $5,000,000 bond that had a 8 percent face interest rate...
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ework Saved Help Save & Che Exercise 8-9 Cash dividends for preferred and common shareholders LO 8-3 Weaver Corporation had the following stock issued and outstanding at January 1, 2018: 1. 62,000 shares of $4 par common stock. 2.5,500 shares of $110 par, 6 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 5,500 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid...
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