Account Titles | Debit | Credit |
Bonds Payable | $ 20,000,000.00 | |
Premium on bonds | $ 2,750,000.00 | |
Loss on Extinguishment | $ 1,350,000.00 | |
Cash | $ 24,100,000.00 | |
To record bond redemption at a loss. |
26. Falco Inc. issued a $20,000,000 bond with a 6% coupon paid semiannually 3 years ago....
Ping Inc. issued 10-year, $1000 bonds two years ago at a coupon rate of 7%. Interest is paid semiannually. If the market rate or YTM is 6.5%, what is the current bond price? A. $1,092.43 B. $1,030.81 C. $896.35 D. $1,216.45 E. None of the above
Two years ago, Synergy Inc. issued a 15-year callable bond with a $1,000 face value and a 12 percent coupon rate of interest (paid semiannually). The bond cannot be called until five years after issue, at which time the call price will equal $1,120. Currently, the bond is selling for $989.What is the bond's yield to call (YTC).
Jiminy's Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 6 percent 4 years ago. The bond currently sells for 105 percent of its face value. The company's tax rate is 23 percent. The book value of the debt issue is $60 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 8 years left to maturity, the book value of this issue is $35...
Additional Assignment :Use the following information to answer questions 9-11. On January 1, 2018 Ball Corp issued $20,000,000 of 3% bonds due in 20 years with interest payable semiannually on June 30 and December 31 each year. The market rate is 4%. The bonds issue at $17,264,444. 9) Which of the following is true about the issue price and the face price? A) The difference in the bond issue price and the bond face value represents additional interest revenue for...
Dan is considering the purchase of Super Technology, Inc. bonds that were issued 6 years ago. When the bonds were originally sold they had a 24-year maturity and a 8.25 percent coupon interest rate, paid annually. The bond is currently selling for $883. Par value of the bond is $1,000. What is the yield to maturity on the bonds if you purchased the bond today?
Nanotech, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 10.51 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 9.78 percent, how much will Nanotech pay to buy back its current outstanding bonds? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.)
The Shallow Company has two bonds outstanding. Bond A was issued exactly 5 years ago at a coupon rate of 9%. Bond Z was issued exactly 1 year ago at a coupon rate of 8%. Both bonds were originally issued with semi-annual coupon payments, terms of 20 years, and face values of $1,000. The current yield to maturity (YTM) is 7.5% for both bonds. Which of the following statements is LEAST correct? The internal rate of return (IRR) on Bond...
Jiminy's Cricket Farm issued a 20-year, 6 percent semiannual coupon bond 3 years ago. The bond currently sells for 103 percent of its face value. The company's tax rate is 22 percent. The book value of the debt issue is $60 million. In addition, the company has a second debt issue, a zero coupon bond with 9 years left to maturity; the book value of this issue is $25 million, and the bonds sell for 64 percent of par. a....
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Four years ago, Mary Stills bought six-year, 5.0 percent coupon bonds issued by the Blossom Corp. for $947.64. If she sells these bonds at the current price of $890.50, what will be her realized yield on the bonds? Assume similar coupon- paying bonds make annual coupon payments. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%) Realised rate of return Sandhill, Inc., has four-year bonds outstanding that pay...
3. You are considering buying a 20-year bond that was issued 2 years ago. Its coupon rate is 4% and interest rates are made semiannually. Its face value is $1000. If the current market interest rate is 6.09%, what should be the bond's price?