Homework Answers
Add Answer to:
1. Describe future value and present value. Do not use numbers and mathematical formulas, describe it...
If the process of coming back to present value (PV) from future cash flows is called...
If the process of coming back to present value (PV) from future cash flows is called discounting, then the process of going to future value (FV) from present value (PV) is called compounding. (TRUE/FALSE)?_______________________ For a corporate bond, the quoted interest rate minus the real risk-free rate is equal to which of the following? Nominal interest rate Real inflation rate plus nominal interest rate Market risk premium The sum of inflation premium, default risk premium, liquidity premium and maturity risk premium
Use financial formulas in Excel to show work for Requirement #1 and #5 of each part...
Use financial formulas in Excel to show work for Requirement #1 and #5 of each part Bill Corporation issued six-year, 7% bonds with a total face value of $1,250,000 on January 1, 2019. Interest is paid semi-annually on June 30 and December 31. The market rate of interest on this date was 10.0%. Bill uses the effective interest rate method. Required: Determine the proceeds of the bond sale on 1/1/19. Explain your method of calculation. Using the present value of...
Entries for issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to...
Entries for issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $4,600,000 of 7-year, 12% bonds at a market (effective) interest rate of 9%, receiving cash of $5,305,375. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, Year 1. If an amount box does not require an entry, leave it blank. Cash...
Use future value and present value calculations to determine the following (a) The future value of...
Use future value and present value calculations to determine the following (a) The future value of a $400 savings deposit after eight years at an annual interest rate of 3 percent. Use Table 1. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value (b) The future value of saving $1,800 a year for five years at an annual interest rate of 4 percent. Use Table 2. (Round time value factor to 3...
You should turn in your answers in ONE Excel document. Use financial formulas in Excel to...
You should turn in your answers in ONE Excel document. Use financial formulas in Excel to show work for Requirement #1 and #5 of each part. An assignment submitted that doesn’t demonstrate your formulas within Excel will receive an unsatisfactory grade. PART A Sparty Corporation issued five-year, 8% bonds with a total face value of $500,000 on January 1, 2019. Interest is paid annually on December 31. The market rate of interest on this date was 6%. Sparty uses the...
Inflows Outflows and Net Present Value
The Harding Corporation has $51.2 million of bonds outstanding that were issued at a coupon rate of 12.75 percent seven years ago. Interest rates have fallen to 11.6 percent. Preston Alter, the vice-president of finance, does not expect rates to fall any further. The bonds have 18 years left to maturity, and Preston would like to refund the bonds with a new issue of equal amount also having 18 years to maturity. The Harding Corporation has a tax rate of...
Entries for issuing Bonds and Amortizing Discount by straight-Ure H UU On the first day of...
Entries for issuing Bonds and Amortizing Discount by straight-Ure H UU On the first day of its fiscal year, Chin Company issued $10,000,000 of five year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective interest rate of 8%, resulting in Chin Company receiving cash of $9,594,415. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest...
1-what is the present value of 40000 at the end of each year for the next...
1-what is the present value of 40000 at the end of each year
for the next 9 years if the discount rate is 11 percent?
2-what is the pv of 100000 at the end of year 9 if discount is
11%
3-whats is the present value of this contract
Question Help res (Present value of a complex stream) Don Draper has signed a contract that will pay him $40,000 at the end of each year for the next 9 years,...
Question Help On January 1, 2018, the Kinship Captal Partners issued $1,000,000 par value, 16 %,...
Question Help On January 1, 2018, the Kinship Captal Partners issued $1,000,000 par value, 16 %, 6-year bonds. Interest is payable semiannualy each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of interest on the date of the bond issue was 2 % (Cick the icon to view the Fuure Value of $1 table) (Cick the icon to view the Future Value of an...
PR.11-02.ALGo Bond Premium, Entries for Bonds Payable Transactions Campbell Inc. produces and sells outdoor equipment. On...
PR.11-02.ALGo Bond Premium, Entries for Bonds Payable Transactions Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $31,800,000 of 10-year, 12% bonds at a market (effective) interest rate of 11%, receiving cash of $33,700,139. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: If an amount box does not require an entry, leave it blank. 1. Journalize the entry to...
Entries for issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $4,600,000 of 7-year, 12% bonds at a market (effective) interest rate of 9%, receiving cash of $5,305,375. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, Year 1. If an amount box does not require an entry, leave it blank. Cash...
Use future value and present value calculations to determine the following (a) The future value of a $400 savings deposit after eight years at an annual interest rate of 3 percent. Use Table 1. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value (b) The future value of saving $1,800 a year for five years at an annual interest rate of 4 percent. Use Table 2. (Round time value factor to 3...
Entries for issuing Bonds and Amortizing Discount by straight-Ure H UU On the first day of its fiscal year, Chin Company issued $10,000,000 of five year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective interest rate of 8%, resulting in Chin Company receiving cash of $9,594,415. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest...
1-what is the present value of 40000 at the end of each year
for the next 9 years if the discount rate is 11 percent?
2-what is the pv of 100000 at the end of year 9 if discount is
11%
3-whats is the present value of this contract
Question Help res (Present value of a complex stream) Don Draper has signed a contract that will pay him $40,000 at the end of each year for the next 9 years,...
Question Help On January 1, 2018, the Kinship Captal Partners issued $1,000,000 par value, 16 %, 6-year bonds. Interest is payable semiannualy each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of interest on the date of the bond issue was 2 % (Cick the icon to view the Fuure Value of $1 table) (Cick the icon to view the Future Value of an...
Most questions answered within 3 hours.
-
Write a program to score the paper-rock-scissor game. Each of
two users types in either P,R...
asked 6 minutes ago -
Calculate the equillibrium constent K for a redox reaction that
has E°cell = -.98 V at...
asked 18 minutes ago -
A concave spherical mirror has a radius of curvature of
magnitude 19.6 cm.
(a) Find the...
asked 19 minutes ago -
3. draw a diagram of the magnetic field:
a. around a long straight wire with a...
asked 18 minutes ago -
If you titrated 30.0 mL of 0.1 M HCl with 0.1 M NaOH, indicate
the approximate...
asked 26 minutes ago -
NADH passes electrons into the electron transport chain. List
the carriers that would receive the electrons,...
asked 35 minutes ago -
A cylindrical cable with a resistivity of 1.6x10-8 Ω·m and cross
sectional area of 3x10-5 m^2...
asked 34 minutes ago -
True or False.
A consumer with convex preferences who is indifferent between
the bundles (5,2) and...
asked 38 minutes ago -
A diamond's index of refraction for red light, 656 nm, is 2.410,
while that for blue...
asked 51 minutes ago -
Compare HPLC, SPE, and GC. Identify the differences, the
advantages, and the weaknesses of each method.
asked 52 minutes ago -
Characteristic x-rays emitted by potassium have a wavelength of
0.374 nm. What is the energy of...
asked 55 minutes ago -
there is a function to create two random numbers between 1 and
25 and a function...
asked 1 hour ago