The face value of a bond is AD 11.000, its stated rate is 7%, and the...
The face value is AED 82,000, the stated rate is 10%, and the term of the bond is eight years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. (10 Points) a. What is the PV of the bond? (3 Pts). AED b. What is the PV of the interest payments? (3 Pts). AED c. How much would the bond sell on the bond market? (2 Pts). AED d. Is this bond a Premium,...
The following terms relate to independent bond issues: 570 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 570 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 880 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,150 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate...
Determine the present value of five- year bonds payable with face value of $88000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. When market rate iof interest is 14% annually______(present value)
On January 1, Year 1, Acorn Financial Corp. issued 825 convertible bonds. Each $1,000 face value bond is convertible into five shares of common stock. The bonds have a 10-year term to maturity and pay interest semiannually. Acorn's common stock has a par value of $20.00 per share. The bonds have a stated interest rate of 4% and pay interest semiannually. The convertible bonds were sold for $875,500. Bond issue costs of $50,000 will be subtracted from the bond sale...
Issue Price The following terms relate to independent bond issues: 640 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 640 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 870 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,040 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the...
The following terms relate to independent bond issues: 570 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 570 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 880 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,150 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payment Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate...
What is a bond? What is face/principal value? What is maturity value? What is stated interest rate? What the types of bonds and be able to define each one? What is a bond issued at premium, at discount or par (face) value mean? What is market interest rate? What is maturity date? Why do investors buy bonds? What is leverage? What is debt-to-equity ratio?
Mind Explorers issues bonds with a stated interest rate of 7%, face value of $200,000, and due in 10 years. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculate the issue price of the bonds. Multiple Choice $163,200. $186,410. $214,878. $200,000.
1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon B) face value. C) maturity D) yield to maturity E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1.000 in the market is called a bond A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when...