Issue price of bonds = Present value of interest+Present value of maturity
= (100000*4%*12.46221)+(100000*0.37689)
Issue price of bonds = 87538
So answer is c) $87538
Question 16 (1 point) On January 1, 2021, Anne Teak Furniture issued $100,000 of 8% bonds,...
On January 1, 2021, Anne Teak Furniture issued $100,000 of 8% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 20 years. The annual market rate for bonds of similar risk and maturity is 10%. What was the issue price of the bonds? (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.) Multiple Choice...
18- On January 1, 2021, Anne Teak Furniture issued $100,000 of 8% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 12 years. The annual market rate for bonds of similar risk and maturity is 10%. What was the issue price of the bonds? (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.) $91,995....
hep Save & Ex On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 11 years. The annual market rate for bonds of similar risk and maturity is 12%. What was the issue price of the bonds? (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of Siand PVAD of $1) (Use appropriate factor(s) from the tables...
Help Save & Exit Submit On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 11 years. The annual market rate for bonds of similar risk and maturity is 12%. What was the issue price of the bonds? (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
22. On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 13 years. The annual market rate for bonds of Similar risk and maturity is 12%. What was the issue price of the bonds? (EV of S1, PV of S1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Multiple...
Accounting for Bonds On May 1, 2020, Merrill Corp issued $1 million ten-year bonds. The bonds pay 10% interest semi-annually on October 31 and April 30. The bonds were issued to yield 12%. Merrill Corp has a fiscal year that ends December 31 each year. Fields Corporation uses the effective-interest method to calculate its interest expense each period. Required: Compute the issue price of the bonds and the journal entry at issuance. Prepare the bond amortization table through April 30,...
Scottie Adams Bird Supplies issued 10% bonds, dated January 1, with a face amount of $150,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 8%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021? Some relevant and irrelevant present value factors: * PV of annuity due of $1: n = 20; i = 4%...
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Scottie Adams Bird Supplies issued 9% bonds, dated January 1, with a face amount of $220,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 8%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021? Some relevant and irrelevant present value factors: * PV of annuity due of $1: n =...
Haste Enterprises issues 10-year, $1,000,000 bonds that pay semiannual interest of $40,000. If the effective annual rate of interest is 10%, what is the issue price of the bonds? Some relevant and irrelevant present value factors: * PV of ordinary annuity of $1: n = 10; i = 10% is 6.14457 **PV of $1: n = 10; i = 10% is 0.38554 * PV of ordinary annuity of $1: n = 20; i = 5.0% is 12.46221 **PV of $1:...
Scottie Adams Bird Supplies issued 13% bonds, dated January 1, with a face amount of $290,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021? Some relevant and irrelevant present value factors: *PV of annuity due of $t: n. 20. = 6% is 12.15812 PV...