Evans & Sons, Inc., sold $100,000 face value, six percent coupon rate, four-year bonds, for an aggregate issue price of $95,000. Calculate the total interest expense to be recorded by the company over the four-year life of the bonds. _____________
Total interest expense
Interest paid (100000*6%*4) | 24000 |
Discount on bond issue (100000-95000) | 5000 |
Total interest expense | 29000 |
Evans & Sons, Inc., sold $100,000 face value, six percent coupon rate, four-year bonds, for an...
Bond Interest Expense Evans & Sons, Inc., sold $100,000 face value, six percent coupon rate, four-year bonds, for an aggregate issue price of $95,000. Calculate the total interest expense to be recorded by the company over the four-year life of the bonds.
Smith & Sons, Inc., sold $200,000 face value, eight percent coupon rate, four-year bonds, for an aggregate issue price of $197,000. Calculate the total interest expense to be recorded by the company over the four-year life of the bonds.
power tap is planning to issue bonds with a face value of
$1,600,000 and a coupon rate 9 percent. The bonds mature in 9 years
and pay interest semiannually every June 30 and December 31. All of
bonds were sold on Juanuary 1 of this year. PowerTap uses the
effective interest amortization method.Assume an annual market rate
of interest of 10 perecent.
Required information The following information applies to the questions displayed below.) PowerTap Utilities is planning to issue bonds...
James Corporation is planning to issue bonds with a face value of $509,500 and a coupon rate of 6 percent. The bonds mature in 15 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required Compute the...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
LaTanya Corporation is planning to issue bonds with a face value of $101,500 and a coupon rate of 8 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sale) price...
On January 1, 20X1 Shapiro and Sons, Inc. issued 9% bonds with a face value of $700,000 at a discount. The bonds yield 10%, pay interest annually, and were sold for $656,992. Shapiro and Sons, Inc. uses the effective interest method for amortizing bond premiums and discounts. How much interest expense will Shapiro and Sons, Inc. report on its 20X1 Income Statement?
LaTanya Corporation is planning to issue bonds with a face value of $104,000 and a coupon rate of 6 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sale) price...
Kintel, Inc., management wants to raise $1 million by issuing six-year zero coupon bonds with a face value of $1,000. The company’s investment banker states that investors would use an 12.38 percent discount rate to value such bonds. Assume semiannual coupon payments. At what price would these bonds sell in the marketplace? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and Bond price to 2 decimal places, e.g. 15.25) How many bonds would the firm have to issue to...
GMAT Corporation is planning to issue bonds with a face value of $253,000 and a coupon rate of 6 percent. The bonds mature in 5 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Determine the issuance price of the bonds assuming an annual market rate of interest of 8.0 percent.