On January 1, 2017, BLANK Corporation purchased 311 of the $1,000 face value, 9%, 10-year bonds...
On January 1, 2017, BLANK Corporation purchased 311 of the $1,000 face value, 9%, 10-year bonds of BLANK #2 Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. BLANK purchased the bonds to yield 11%. How much did BLANK pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
BLANK must pay for the bonds
Homework Answers
Present value of the bonds = Present value of interest @11% for 10 years + Present value of maturity value @11% for 10 years
= 311000*9%*5.88923 + 311000*0.35218
= $274368
He should pay amount $274368.
Add Answer to:
On January 1, 2017, BLANK Corporation purchased 311 of the
$1,000 face value, 9%, 10-year bonds...
On January 1, 2020, Shamrock Corporation purchased 321 of the $1,000 face value, 10%, 10-year bonds...
On January 1, 2020, Shamrock Corporation purchased 321 of the $1,000 face value, 10%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Shamrock purchased the bonds to yield 11%. How much did Shamrock pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Shamrock must pay for the bonds $enter a dollar amount should be paid...
On January 1, 2020, Sweet Corporation sold a building that cost $259,320 and that had accumulated...
On January 1, 2020, Sweet Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Sweet received as consideration a $249,320 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale of...
On January 1, 2020, Buffalo Corporation purchased 350 of the $1,000 face value, 15%, 10-year bonds...
On January 1, 2020, Buffalo Corporation purchased 350 of the $1,000 face value, 15%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Buffalo purchased the bonds to yield 11%. How much did Buffalo pay for the bonds?
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated depreciation of $105,010 on the date of sale. Bramble received as consideration a $264,380 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had na ready market. The prevailing rate of interest for a note of this type on January 1, 2020 was 12%. At what amount should the gain from the sale of...
On January 1, 2018, Shirley Corporation purchased 10% bonds dated January 1, 2018, with a face...
On January 1, 2018, Shirley Corporation purchased 10% bonds dated January 1, 2018, with a face amount of $18 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the...
On January 1, 2017, Concord Corporation sold 9% bonds with a face value of $2700000. The...
On January 1, 2017, Concord Corporation sold 9% bonds with a
face value of $2700000. The bonds mature in five years, and
interest is paid semiannually on June 30 and December 31. The bonds
were sold for $2924600 to yield 7%. Using the effective-interest
method of amortization, interest expense for 2017 is
$204052.
$189000.
$204672.
$243000
On November 1, 2018, Howell Company purchased 1,000 of the $1,000 face value, 9% bonds of...
On November 1, 2018, Howell Company purchased 1,000 of the $1,000 face value, 9% bonds of Ramsey, Incorporated, for $1,052,500, which includes accrued interest of $15,000. The bonds, which mature on January 1, 2023, pay interest semiannually on March 1 and September 1. Assuming that Howell uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, the net carrying value of the bonds should be shown on Howell's December 31, 2018, balance sheet at a....
Strathern Corporation issued ten-year term bonds dated January 1, 2017, with a face value of $800,000....
Strathern Corporation issued ten-year term bonds dated January 1, 2017, with a face value of $800,000. The face interest rate is 10 percent, and interest is payable annually December 31. The bonds were issued for $708,400 to yield an effective annual rate of 12 percent. Use the effective interest method of amortization. Round answers to the nearest dollar. a. Prepare entries in journal form without explanations to record the bond issue on January 1, 2017, and the payments of interest on January,...
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determin...
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) LINK TO TEXT Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Schedule...
On January 1 of this year, Barnett Corporation sold bonds with a face value of $500,000...
On January 1 of this year, Barnett Corporation sold bonds with a
face value of $500,000 and a coupon rate of 7 percent. The bonds
mature in 10 years and pay interest annually on December 31.
Barnett uses the effective-interest amortization method. Ignore any
tax effects. Each case is independent of the other cases. (FV of
$1, PV of $1, FVA of $1, and PVA of $1) (Use the
appropriate factor(s) from the tables provided. Round your final
answers to...
On January 1, 2020, Sweet Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Sweet received as consideration a $249,320 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale of...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated depreciation of $105,010 on the date of sale. Bramble received as consideration a $264,380 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had na ready market. The prevailing rate of interest for a note of this type on January 1, 2020 was 12%. At what amount should the gain from the sale of...
On January 1, 2017, Concord Corporation sold 9% bonds with a
face value of $2700000. The bonds mature in five years, and
interest is paid semiannually on June 30 and December 31. The bonds
were sold for $2924600 to yield 7%. Using the effective-interest
method of amortization, interest expense for 2017 is
$204052.
$189000.
$204672.
$243000
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) LINK TO TEXT Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Schedule...
On January 1 of this year, Barnett Corporation sold bonds with a
face value of $500,000 and a coupon rate of 7 percent. The bonds
mature in 10 years and pay interest annually on December 31.
Barnett uses the effective-interest amortization method. Ignore any
tax effects. Each case is independent of the other cases. (FV of
$1, PV of $1, FVA of $1, and PVA of $1) (Use the
appropriate factor(s) from the tables provided. Round your final
answers to...
Most questions answered within 3 hours.
-
A speeding car is traveling along a straight road with a
constant speed of 100 km/hour....
asked 2 minutes ago -
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 7 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 22 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 16 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 29 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 38 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 37 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 39 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 40 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 44 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 1 hour ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 1 hour ago