First picture is the main question and the others are the answer choices.
Homework Answers
Since stated interest rate is less than the effective yield,
The Bonds are issued at a DISCOUNT
The Bonds are sold for LESS THAN $500000
Each semi annual interest to bond holders is $10000.
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First picture is the main question and the others are the answer
choices.
Question 1 1...
Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the...
Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the bonds mature in 10 years. The bonds are issued with an effective yield of 4.125% The bonds are issued at a [ Select ] ["Discount", "Premium", "Par"] The bonds are sold for [...
First image is the question and the rest are the answer options Question 3 1 pts...
First image is the question and the rest are the answer
options
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is: [Select] Assuming interest is paid annually on December 31st what is the journal entry to record interest payments? [Select] What is the journal entry recorded when the bonds mature? [Select] Question 3 1 pts If...
orrect Question 8 0/1 pts You are considering buying a bond with a $1000 face value....
orrect Question 8 0/1 pts You are considering buying a bond with a $1000 face value. The coupon rate is 6%, paid semi-annually. The bond will mature in 10 years. The YTM for similar bonds in the market is 8% (annually). How much will the ANNUAL interest payments be? 560 11 pts Question 9
On January 1, Hemi Corporation issued $500,000 of 15-year, 10% bonds for $586,460 yielding an effective...
On January 1, Hemi Corporation issued $500,000 of 15-year, 10% bonds for $586,460 yielding an effective interest rate(yield to maturity) of 8%. Interest is paid semi-annually on June 30 and December 31/ Required: 1) Show computations to confirm the issue price. 2) Compute an amortization schedule for the 15 years of the bonds' life. 3) Give Journal entries for: (A) bond issuance, (b) semi-annual interest payment on June 30 of the first year, and (c) the semi-annual interest payment on...
Question 2 1 pts Round answers to the nearest dollar and do not include $ sign. Bonds with a face value of $100,000 and...
Question 2 1 pts Round answers to the nearest dollar and do not include $ sign. Bonds with a face value of $100,000 and a quoted price of 99 are issued at $ Bonds with a face value of $500,000 and a quoted price of 101 are issued at $ Bonds with a face value of $300,000 and a quoted price of 100 are issued at $ Question 3 1 pts If bonds with a face value of $750,000 and...
Note: If not otherwise stated, assume that: • Yield-to-maturity (YTM) is an APR, semi-annually compounded •...
Note: If not otherwise stated, assume that: • Yield-to-maturity (YTM) is an APR, semi-annually compounded • Bonds have a face value of $1,000 • Coupon bonds make semi-annual coupon payments; however, coupon rates (rc) are annual rates, i.e., bonds make a semi-annual coupon payment of rc/2 Four years ago, Candy Land Corp. issued a bond with a 14% coupon rate, semi-annual coupon payments, $1,000 face value, and 14-years until maturity. a) You bought this bond three years ago (right after...
Calculate the Present Value in the three scenarios below PART II: BOND ISSUANCE Newly issued 10-year...
Calculate the Present Value in the three scenarios below PART II: BOND ISSUANCE Newly issued 10-year bond Present Value at Issuance Present Value P V Periods N Interest Payments PMT Future Value Semi-annual payment 2017-2027 Interest paid semi-annually This bond make regular semi-annual payments of interest (entered in $ dollars se Future Value in 10 years = Bonds Original Face Value 1. The new value of the bond if overall rates in the market increased by 2% no PV Present...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
Corp-X issued corporate bonds one year ago at par with a face value of $1000, an annual coupon rate of 6%(paid semi annually), and a 20 years to maturity. At the moment, bonds of equivalent risk and m...
Corp-X issued corporate bonds one year ago at par with a face value of $1000, an annual coupon rate of 6%(paid semi annually), and a 20 years to maturity. At the moment, bonds of equivalent risk and maturity to these Corp-X bonds are being issued at par with a coupon rate of 5.5% per year(paid semi annually) 1. At the time that Corp-X bonds were issued, what was the Yield to Maturity of the bonds? And What is the current...
QUESTION 1 On January 1, 2019, Firm X issued 7% bonds, face value $5,000,000 due at...
QUESTION 1 On January 1, 2019, Firm X issued 7% bonds, face value $5,000,000 due at the end of 5 years with interest paid annually. Parte 1: Assume yield rate is 6%. Yield Rate 6% Present value of 1.74726 at 6% 4.21236 Present value of annuity (5 years 6%) 1. How much the bond was sold 2. Amount of Premium or Discount? 3. Submit the Jornal ticket for the company that issues the bond and for the investor who buys...
First image is the question and the rest are the answer
options
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is: [Select] Assuming interest is paid annually on December 31st what is the journal entry to record interest payments? [Select] What is the journal entry recorded when the bonds mature? [Select] Question 3 1 pts If...
orrect Question 8 0/1 pts You are considering buying a bond with a $1000 face value. The coupon rate is 6%, paid semi-annually. The bond will mature in 10 years. The YTM for similar bonds in the market is 8% (annually). How much will the ANNUAL interest payments be? 560 11 pts Question 9
Question 2 1 pts Round answers to the nearest dollar and do not include $ sign. Bonds with a face value of $100,000 and a quoted price of 99 are issued at $ Bonds with a face value of $500,000 and a quoted price of 101 are issued at $ Bonds with a face value of $300,000 and a quoted price of 100 are issued at $ Question 3 1 pts If bonds with a face value of $750,000 and...
Calculate the Present Value in the three scenarios below PART II: BOND ISSUANCE Newly issued 10-year bond Present Value at Issuance Present Value P V Periods N Interest Payments PMT Future Value Semi-annual payment 2017-2027 Interest paid semi-annually This bond make regular semi-annual payments of interest (entered in $ dollars se Future Value in 10 years = Bonds Original Face Value 1. The new value of the bond if overall rates in the market increased by 2% no PV Present...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
QUESTION 1 On January 1, 2019, Firm X issued 7% bonds, face value $5,000,000 due at the end of 5 years with interest paid annually. Parte 1: Assume yield rate is 6%. Yield Rate 6% Present value of 1.74726 at 6% 4.21236 Present value of annuity (5 years 6%) 1. How much the bond was sold 2. Amount of Premium or Discount? 3. Submit the Jornal ticket for the company that issues the bond and for the investor who buys...
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