Interest payment = Bonds X Rate of interest X 6/12
= $300,000 X 7% X 6/12
= $10,500
4th option
7 A year bonds with a par value of $300.000 on Januarytat a price of The...
Albatross company issues 6%, 7-year bonds with a par value of $350,000 on January 1 at a price of $327,000, when the market rate of interest was 7%. The bonds pay interest semiannually. The amount of cash paid each semiannual payment is: $0. $24,500. $21,000. $12,250. $10,500.
A company issues 696, 7-year bonds with a par value of $240,000 on January 1 at a price of $254,029, when the market rate of interest was 5% The bonds pay interest sem annually The amount of each sem annual terest payment is Multiple Choice $6,000 $14,400 $12,000 $7,200 $0
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Wookie Company issues 7%, five-year bonds, on January 1 of this year, with a par value of $99,000 and semiannual interest payments (0) (1) (2) Seniannual Period-End January 1, 15 sunce June 30, first payment December 31. second payment Unamortized Premium $8.091 7.282 Carrying Value $107.091 106, 282 105, 473 6. 473 Use the above straight-line bond amortization table and prepare journal entries for the following (a) The issuance of bonds on January 1 (b) The first interest payment on...
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McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 12% coupon paid semiannually (6% each 6 months), and those bonds sell at their par value. McCurdy's Class P bonds have the same risk, maturity, and par value, but the p bonds pay a 12% annualcoupon. Neither bond is callable. At what price should the annual payment bond sell?
1.A 30-year, $1,000 par value bond has a 9.5% annual payment coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what willthe price be 9 years from now?2.Knapp Bros, LLC is planning to issue new 20-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callableafter 7 years at a 7% call premium, how would this affect their required rate of...
A company issues 8%, 8-year bonds with a par value of $130,000 on January 1 at a price of $137,861, when the market rate of interest was 7%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: points (8 01:24:53 0 $10,400 0 0 0 $4,550. 0
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