Homework Answers
The amount to be received from the Bond Issuance
Issue price of the Bond = Face Value of the Bond x Percentage of Quote
= $40.00 Million x 99%
= $40.00 Million x 0.99
= $39.60 Million
Accrued interest for 3 Months = Face Value of the Bond x Interest rate x [3 Months / 12 Months]
= $40.00 Million x 9.00% x [3 Months / 12 Months]
= $0.90 Million
Therefore, the amount to be received from the Bond Issuance = Issue price of the Bond + Accrued interest for 3 Months
= $39.60 Million + $0.90 Million
= $40.50 Million
“Hence, the amount to be received from the Bond Issuance will be $40.50 Million”
Add Answer to:
TMC issued $40 million of its 9% bonds on April 1, 2021 ot 99, reflecting a...
TMC issued $50 million of its 12% bonds on April 1, 2021 at 96, reflecting a...
TMC issued $50 million of its 12% bonds on April 1, 2021 at 96, reflecting a market rate of interest of 14%, plus accrued interest. The bonds are dated January 1, 2021, and mature on December 31, 2040. Interest is payable semiannually on June 30 and December 31. What amount did TMC receive from the bond issuance? (Round your final answer to 2 decimal places.) $49.5 million. O $51.75 million. $49.0 million. $50.5 million.
TMC issued $65 million of its 12% bonds on April 1, 2021 at 98, reflecting a...
TMC issued $65 million of its 12% bonds on April 1, 2021 at 98, reflecting a market rate of interest of 14%, plus accrued interest. The bonds are dated January 1, 2021, and mature on December 31, 2040. Interest is payable semiannually on June 30 and December 31. What amount did TMC receive from the bond issuance? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Murupe choice 0 $6370 million 0 $66.95 milicon, 0 S65.65...
apter 14 On March 1, 2021, Brown-Ferring Corporation issued $101.5 million of 12% bonds, dated January...
apter 14 On March 1, 2021, Brown-Ferring Corporation issued $101.5 million of 12% bonds, dated January 1, 2021, for $98 million (plus accrued interest). The bonds mature on December 31, 2040, and pay interest semiannually on June 30 and December 31. Brown-Ferring's fiscal period is the calendar year. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds by Brown-Ferring....
On September 1, 2021, Contemporary Products, issued $16 million of its 10% bonds at face value....
On September 1, 2021, Contemporary Products, issued $16 million of its 10% bonds at face value. The bonds are dated June 1, 2021, and mature on May 30, 2029. Interest is payable semiannually on June 1 and December 1. At the time of issuance, Contemporary Products would receive cash proceeds that would include accrued interest of: Multiple Choice Zero. $200,000 $400,000. O $1.6 million
Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $740 million on...
Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $740 million on January 1, 2021. The bonds sold for $671,914,968 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 9%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective...
Universal Foods issued 10% bonds, dated January 1, with a face amount of $220 million on...
Universal Foods issued 10% bonds, dated January 1, with a face amount of $220 million on January 1, 2021. The bonds mature on December 31, 2040 (20 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (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:...
On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face...
On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face amount of $35 million. The bonds sold for $34.3 million and mature on February 28, 2024. Interest is paid semiannually on August 31 and February 28. Stillworth Corporation acquired $35,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of...
On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount...
On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $870,000. The bonds sold for $855,000 and mature on February 28, 2041 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight- line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds by Stratford Lighting on March 1, 2021, interest on August 31,...
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $770 million on...
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $770 million on January 1, 2021. The bonds sold for $712,070,205 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective...
2 own Ferring Corporation issued $100 milion of 12% bonds, dated January 1, 2018, for $99...
2 own Ferring Corporation issued $100 milion of 12% bonds, dated January 1, 2018, for $99 milion ipius accrued nterest). T periad is the calandar year he bonds maturc on December 31, 2037, and pay interest semiannually on June 30 and Decembor 31, Brown-Ferring's fiscal Required 1. Dctormine the amount of accrued interest that was included in the p roceeds recelved from the band sal 802. Prapare the journal entry for the issuance af the bonds by Brown-Forring Complete this...
TMC issued $50 million of its 12% bonds on April 1, 2021 at 96, reflecting a market rate of interest of 14%, plus accrued interest. The bonds are dated January 1, 2021, and mature on December 31, 2040. Interest is payable semiannually on June 30 and December 31. What amount did TMC receive from the bond issuance? (Round your final answer to 2 decimal places.) $49.5 million. O $51.75 million. $49.0 million. $50.5 million.
TMC issued $65 million of its 12% bonds on April 1, 2021 at 98, reflecting a market rate of interest of 14%, plus accrued interest. The bonds are dated January 1, 2021, and mature on December 31, 2040. Interest is payable semiannually on June 30 and December 31. What amount did TMC receive from the bond issuance? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Murupe choice 0 $6370 million 0 $66.95 milicon, 0 S65.65...
apter 14 On March 1, 2021, Brown-Ferring Corporation issued $101.5 million of 12% bonds, dated January 1, 2021, for $98 million (plus accrued interest). The bonds mature on December 31, 2040, and pay interest semiannually on June 30 and December 31. Brown-Ferring's fiscal period is the calendar year. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds by Brown-Ferring....
On September 1, 2021, Contemporary Products, issued $16 million of its 10% bonds at face value. The bonds are dated June 1, 2021, and mature on May 30, 2029. Interest is payable semiannually on June 1 and December 1. At the time of issuance, Contemporary Products would receive cash proceeds that would include accrued interest of: Multiple Choice Zero. $200,000 $400,000. O $1.6 million
On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $870,000. The bonds sold for $855,000 and mature on February 28, 2041 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight- line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds by Stratford Lighting on March 1, 2021, interest on August 31,...
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $770 million on January 1, 2021. The bonds sold for $712,070,205 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective...
2 own Ferring Corporation issued $100 milion of 12% bonds, dated January 1, 2018, for $99 milion ipius accrued nterest). T periad is the calandar year he bonds maturc on December 31, 2037, and pay interest semiannually on June 30 and Decembor 31, Brown-Ferring's fiscal Required 1. Dctormine the amount of accrued interest that was included in the p roceeds recelved from the band sal 802. Prapare the journal entry for the issuance af the bonds by Brown-Forring Complete this...
Most questions answered within 3 hours.
-
Write a C++ program that will convert distance measurements from
miles to kilometers. Specifically, the program...
asked 56 seconds ago -
Given the following stresses (in MP a); in each case:
(a) Find the principal stresses σ1;...
asked 5 minutes ago -
You are one of the first engineers hired into the
manufacturing engineering department at a brand...
asked 10 minutes ago -
Suppose car models A, B, and C are popular among drivers.
Suppose 12% of the drivers...
asked 27 minutes ago -
write a program that finds the number of zeros in an 8-bit data
item using assembly...
asked 28 minutes ago -
Which statement is always true: The total energy of a closed
system...
A) is always equally...
asked 41 minutes ago -
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 2 hours ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 3 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 4 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 5 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 6 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago