Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...

Question

Question

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $550,000 and a coupon inter

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

	Amount	PV factor 2.5%	Present value
Semi-annual interest	16500	8.75206	144409
Principal	550000	0.78120	429660
			574069

Amount	574069

Workings:
Semi-annual interest	16500	=550000*6%/2

Semi-annual market rate	2.50%	=5%/2
PV factor 2.5%:
Semi-annual interest	8.75206	=(1-(1.025)^-10)/0.025
Principal	0.78120	=1/1.025^10

Add a comment

Answer 2

Similar Homework Help Questions

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $410,000 and a coupon interest rate of 6%, with interest payable semi-annually. Click here to view the factor table. Your answer is incorrect. Try again. How much would Carvel receive from the sale of these bonds if the market interest rate was 5%? (Round answer to the nearest whole dollar, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in the...
Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $550,000 and a coupo...

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $550,000 and a coupon interest rate of 6%, with interest payable semi-annually. Click here to view the factor table. x Your answer is incorrect. Try again. How much would Carvel receive from the sale of these bonds if the market interest rate was 5%? (Round answer to the nearest whole dollar, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in...
Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $450,000 and a coupon interest rate of 6%, with interest payable semi-annually. Click here to view the factor table. How much would Carvel receive from the sale of these bonds if the market interest rate was 5%? (Round answer to the nearest whole dollar, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Amount LINK TO...

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $490,000 and a coupon interest rate of 6%, with interest payable semi-annually. Click here to view the factor table. How much would Carvel receive from the sale of these bonds if the market interest rate was 5%? (Round answer to the nearest whole dollar, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Amount LINK TO...
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...

Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon Interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account tities are automatically indented when...
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...

Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $640,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%....

Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of...

Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%....
FULL SCREEN PRINTER VERSION 4 BACK NEXT Question 6 Hopkins Ltd. issued five-year bonds with a...

FULL SCREEN PRINTER VERSION 4 BACK NEXT Question 6 Hopkins Ltd. issued five-year bonds with a face value of $180,000 on January 1. The bonds have a coupon interest rate of 8% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 9% when the bonds were issued at a price of 95. Using above information, determine the proceeds received by the company when the bonds were issued. Proceeds from issue of the bonds...
Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of...

Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $480,000 and a coupon interest rate of 6%, with interest payable semi-annually. (a) Your answer is correct. Prepare a partial bond amortization table for the first two interest payments assuming that interest is paid on July 1 and January 1 and that the bonds sold when the market interest rate was 5%. (Round answers to 0 decimal places, e.g. 5,255.) CARVEL CORP. Bond Premium...

Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of...

Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $590,000 and a coupon interest rate of 6%, with interest payable semi-annually. (a) Prepare a partial bond amortization table for the first two interest payments assuming that interest is paid on July 1 and January 1 and that the bonds sold when the market interest rate was 5%. (Round answers to o decimal places, e.g. 5,255.) CARVEL CORP. Bond Premium Amortization On January 1,...

Brief Exercise 10-15 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...

Homework Answers