Question

(show YOU Prob #2: Answer the Questions Below using the Following Information (sh A. January 1-ST, The 49er-Corp Issued 9.000 Bonds at 108.80%. B. Each Bond had a Face Value of $ 1 000 The Maturity Date is 20 years from Now C. The Face Rate of Interest is 4.50%. Interest is Payable Annually on December 31st. Compute the Total Cash Proceeds =_ Received by the Corporation on the Date the Bonds were Issued. Compute the Amount Shown as Bonds Payable =- in the Balance Sheet after the Bonds are issued. =oros da Compute the Amount Shown as Bonds Payable = n the Balance Sheet at the End of Year 15. te the Amount of Interest Paid on ONE Bond Annually =_ Sto noise botsium the Total Amount of Interest Paid Every Year on All Bonds = bolum e Total Amount of Interest Paid = dire Life of All Bonds.

Answer 1

39 40 Number of Bonds Issued Value of Bonds Total Cash Proceeds (A*B) 9000 108.80% 9792 41 42 43 2) 44 Amount shown as Bonds Payable in the Balance sheet after the Bonds have been issued 9792 45 46 3)

46 3) 47 Date Cash paid @4.5% of Par Value Interest Expense @3.86% Carrying Value Amortization of premium 378 377 376 375 374 372 405 405 405 405 405 405 405 405 405 405 405 405 405 Unamortized Premium 792 765 737 708 677 646 613 579 544 508 470 430 389 347 302 256 209 9,792 9,765 9,737 9,708 9,677 9,646 9,613 9,579 9,544 9,508 9,470 9,430 9,389 9,347 371 370 368 367 366 364 362 361 359 357 355 354 352 349 60 405 9,302 159 405 405 405 405 405 405 9,256 9,209 9,159 9,108 9,054 9,000

9000 4.50% 20.0 Face value Annual Coupon Rate Years to maturity Payment Frequency Price of Bond YTM (9,792) 3.86% Amount shown as Bonds Payable in the Balance sheet at the end of Year 15 9,256 80 824) Amount of Interest paid on one Bond annually 0.05 83 84 5) Total amount of interest paid every year on all bonds 405 85 866) Total amount of interest Paid 8,100 87