Homework Answers
Face Value of Bonds = $200,000
Time to Maturity = 20 years
Annual Interest Rate = 9.00%
Issue Value of Bonds = $200,000 * PV of $1 (9.00%, 20)
Issue Value of Bonds = $200,000 * 0.1784
Issue Value of Bonds = $35,680
So, the price Joe paid for the bonds is $35,680
Add Answer to:
On May 1, 2021. Joe purchased $200,000 in zero-coupon bonds that mature on May 1, 2041....
On May 1, 2021, Joe purchased $220,000 in zero-coupon bonds that mature on May 1, 2041....
On May 1, 2021, Joe purchased $220,000 in zero-coupon bonds that mature on May 1, 2041. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 8%. Interest compounds annually. (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. Enter your answer rounded to the nearest whole dollar.) Required: Calculate the price...
On May 1, 2021, Joe purchased $270,000 in zero-coupon bonds that mature on May 1, 2041....
On May 1, 2021, Joe purchased $270,000 in zero-coupon bonds that mature on May 1, 2041. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 10%. Interest compounds annually. (CV of $1. PV of $1. EVA Of 51. PVA Of $1. FVADO $1 and PVADOR $1 (Use appropriate factor(s) from the tables provided. Enter your answer rounded to the nearest whole dollar.) Required: Calculate the price Joe paid...
On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value of $7.0...
On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value of $7.0 million for cash. The bonds mature in 8 years and were issued at a price of $3,781,890. (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.) Required: What amount of interest expense on these bonds would Morton Sales Co. report in its 2021 income statement?
Help! :) On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value...
Help! :) On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value of $6.7 million for cash. The bonds mature in 12 years and were issued at a price of $3,329,699. (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.) Q. What total interest expense will Morton Sales Co. report over the 12 year life of these bonds? (Enter...
On January 1, 2021 Morton Sales Co. issued zero-coupon bonds with a face value of $6.3...
On January 1, 2021 Morton Sales Co. issued zero-coupon bonds with a face value of $6.3 milion for cash. The bonds mature in 10 years and were issued at a price of $2.661183 FV of $1. PV of St. FVA 51. PUAS. EVAD of Stand PVAD $ (Use appropriate factor(s) from the tables provided.) Required: What amount of interest expense on these bonds would Morton Sales Co. report in its 2021 income statement? (Enter your answer rounded to the nearest...
22. On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1....
22. On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 13 years. The annual market rate for bonds of Similar risk and maturity is 12%. What was the issue price of the bonds? (EV of S1, PV of S1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Multiple...
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face...
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $280 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((EV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds...
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $340 million.
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $340 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. (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.) Required: Determine the price of the...
On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5...
On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5 million for cash. The bonds mature in 12 years and were issued at a price of $2,886,065. (FV Of S1 PV of $1. FVA of $1. PVA of $1. EVAD of S1 and PVAD of SD (Use appropriate factor(s) from the tables provided.) Required: What will Morton Sales Co. report on these bonds in its December 31, 2021, balance sheet? (Round your intermediate calculations...
On January 1, 2018, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5...
On January 1, 2018, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5 million for cash. The bonds mature in 12 years and were issued at a price of $2,886,065. (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.) Required: What will Morton Sales Co. report on these bonds in its December 31, 2018, balance sheet? (Enter your answer rounded...
On May 1, 2021, Joe purchased $220,000 in zero-coupon bonds that mature on May 1, 2041. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 8%. Interest compounds annually. (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. Enter your answer rounded to the nearest whole dollar.) Required: Calculate the price...
On May 1, 2021, Joe purchased $270,000 in zero-coupon bonds that mature on May 1, 2041. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 10%. Interest compounds annually. (CV of $1. PV of $1. EVA Of 51. PVA Of $1. FVADO $1 and PVADOR $1 (Use appropriate factor(s) from the tables provided. Enter your answer rounded to the nearest whole dollar.) Required: Calculate the price Joe paid...
On January 1, 2021 Morton Sales Co. issued zero-coupon bonds with a face value of $6.3 milion for cash. The bonds mature in 10 years and were issued at a price of $2.661183 FV of $1. PV of St. FVA 51. PUAS. EVAD of Stand PVAD $ (Use appropriate factor(s) from the tables provided.) Required: What amount of interest expense on these bonds would Morton Sales Co. report in its 2021 income statement? (Enter your answer rounded to the nearest...
22. On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 13 years. The annual market rate for bonds of Similar risk and maturity is 12%. What was the issue price of the bonds? (EV of S1, PV of S1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Multiple...
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $280 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((EV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds...
On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5 million for cash. The bonds mature in 12 years and were issued at a price of $2,886,065. (FV Of S1 PV of $1. FVA of $1. PVA of $1. EVAD of S1 and PVAD of SD (Use appropriate factor(s) from the tables provided.) Required: What will Morton Sales Co. report on these bonds in its December 31, 2021, balance sheet? (Round your intermediate calculations...
Most questions answered within 3 hours.
-
5. Ethics deals with the moral quality, fitness, or propriety of
a course of action that...
asked 59 seconds ago -
Single Plantwide Factory Overhead Rate
Kennedy Appliance Inc.’s Machining Department incurred $102,900
of factory overhead cost...
asked 2 minutes ago -
Two particles with charges +4e and -7e are
initially very far apart (effectively an infinite distance...
asked 14 minutes ago -
Holding all else constant, when teams face a binding roster
limit, the salary of players is...
asked 18 minutes ago -
1. When can parametric and non-parametric statistical tests be
used?
A. Parametric?
The independent variable is...
asked 26 minutes ago -
How can bacteria resist killing from cationic antimicrobial
peptides (CAMPs)? Choose all that apply. a. Use...
asked 33 minutes ago -
As an economic term, what is the definition of :Technological
Trends? Please try and keep the...
asked 35 minutes ago -
Labor demand will be less elastic in those labor markets in
which:
A.
the price elasticity...
asked 36 minutes ago -
5 situations are listed below and 8 reduction chemicals are
listed A-H below, match the letters...
asked 41 minutes ago -
1. If more spouses decide to quit their jobs to stay home with
their young children...
asked 45 minutes ago -
Please use algebraic manipulation to prove the following
statement:
x'y'z' + x'yz' + x'yz + xyz'...
asked 46 minutes ago -
3.Another patient has a family history in which:
1. the disease was equally distributed among the...
asked 49 minutes ago