Park Corporation issued 10-year bonds with a face value of $10,000,000. The face rate of interest...
Park Corporation issued 10-year bonds with a face value of $10,000,000. The face rate of interest on the bonds was 8%, and Park agreed to make semiannual payments. The market rate of interest at the time the bonds were issued was 6%. How much cash did Park Corporation receive from the issuance of the bonds?
Group of answer choices
$10,000,000
$11,487,747
$14,265,101
$11,472,017
Homework Answers
Issue price of bonds = Present value of interest+Present value of maturity
= (10000000*4%*14.8775)+(10000000*0.5537)
Issue price of bonds = 11487747
So answer is b) $11487747
Add Answer to:
Park Corporation issued 10-year bonds with a face value of
$10,000,000. The face rate of interest...
On January 1st, 2013, Nicklaus Corp issued $5M of 10-year 6% semiannual bonds. The market rate...
On January 1st, 2013, Nicklaus Corp issued $5M of 10-year 6% semiannual bonds. The market rate at the time of the issuance was 4%. The bonds makes interest payments on January 1 and July 1. 1. Did Nicklaus receive more or less cash than the face value of the bonds? By how much? 2. Assuming a December 31st fiscal year end, how much was interest paid in 2013? 3. What will the total interest expense be over the life of...
XYZ, Inc. issued 4-year bonds with a face value of $500,000. The face rate of interest...
XYZ, Inc. issued 4-year bonds with a face value of $500,000. The face rate of interest was 8%, to be paid semiannually, but the market rate of interest was only 7%. If the current book value of the bonds is $515,286.36, what is the interest expense for the next interest period? Group of answer choices $20,611.45 $20,000.00 $36,070.04 $18,035.02
On January 1, 2020, Bulgur Corporation issues 12-year bonds with a face value of $10,000,000 and...
On January 1, 2020, Bulgur Corporation issues 12-year bonds with a face value of $10,000,000 and a stated annual interest rate of 6%. The bonds pay interest annually on December 31. The market rate of interest is 5%, and the company receives cash proceeds of $10,886,325 when the bonds are issued. What is the journal entry that Bulgur will make to record the second bond interest payment on December 31, 2021?
R&L Repair Services issued bonds with a face value of $10,000,000 and a coupon rate of...
R&L Repair Services issued bonds with a face value of $10,000,000 and a coupon rate of 6% paid semiannually for 6 years. market rate of interest is 5%. How much is the market value of the bond? Select one: A.$10,512,888 B.S 6,581,880 C.$2,128,180 D.$ 8,410,310
Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and...
Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment CashInterest Balance 400,000 344,632 400,000 342,971 400,000 341 400,000 Balance 11,487,747 11,432,379 11,375,350 11,316,611 55,368 57,029 58,739 ,261 a. What is the selling price of the bond issue? (1 point b. What is the annual stated interest rate on the bonds? (3 points) c. What is...
On 12/31/16, flowmo inc. issued 10-year, 8% bonds with a face value of $10,000,000 for a...
On 12/31/16, flowmo inc. issued 10-year, 8% bonds with a face value of $10,000,000 for a price to yield a market rate of 6.5%. what is the amount of interest expense reported on flowmo’s income statement for 2018?
ABC Company issued $200,000 face value bonds on January 1, 2017, with semiannual interest payments to...
ABC Company issued $200,000 face value bonds on January 1, 2017, with semiannual interest payments to be made on June 30 and December 31 at a contract rate of 10%. The bonds were scheduled to mature five years after they were issued. On January 1, 2020, three years after the bonds were issued, the company repurchased 40% of the outstanding bonds for $79,000. Required: Part A 1. Assume that the bonds were issued when the market rate of interest snow...
Park Corporation is planning to issue bonds with a face value of $3,700,000 and a coupon...
Park Corporation is planning to issue bonds with a face value of $3,700,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. Required: 1.&2. Prepare the journal entry to record the issuance...
On October 1, 2016 Macklin Corporation issued 10-year bonds with a face value of $50,000,000. Interest is...
On October 1, 2016 Macklin Corporation issued 10-year bonds with a face value of $50,000,000. Interest is paid annually on December 31. The company uses the effective interest method. Coupon Rate 6.5%. Market Rate 6%. Find the issue price. The entry to record the issuance of the bonds. Prepare the journal entry to record the first interest payment on December 31.
Ewing Corp issued $4.0M worth of 20-year bonds on January 1st, 2013. The bond requires semiannual...
Ewing Corp issued $4.0M worth of 20-year bonds on January 1st, 2013. The bond requires semiannual interest payments (on January 1st and July 1st) with an interest rate of 5%. The market rate was 5% at the time of the issuance. 1. Did Ewing receive any more or less than the face value of the bonds? Why or why not? 2. How much will Ewing pay in interest when the first payment is due? 3. Assume Ewing’s fiscal year ends...
Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment CashInterest Balance 400,000 344,632 400,000 342,971 400,000 341 400,000 Balance 11,487,747 11,432,379 11,375,350 11,316,611 55,368 57,029 58,739 ,261 a. What is the selling price of the bond issue? (1 point b. What is the annual stated interest rate on the bonds? (3 points) c. What is...
ABC Company issued $200,000 face value bonds on January 1, 2017, with semiannual interest payments to be made on June 30 and December 31 at a contract rate of 10%. The bonds were scheduled to mature five years after they were issued. On January 1, 2020, three years after the bonds were issued, the company repurchased 40% of the outstanding bonds for $79,000. Required: Part A 1. Assume that the bonds were issued when the market rate of interest snow...
Most questions answered within 3 hours.
-
A 8.62 -m ladder with a mass of 21.1 kg lies flat on the ground.
A...
asked 44 seconds ago -
A mixture contains 5.432 g of
sand and 2.521 g of salt. What is the percentage...
asked 1 minute ago -
What problem would arise from this vanadium-based treatment over
the course of a lifetime in diabetes
asked 6 seconds ago -
Homework: Create a Class.... from scratch
Design , implement and test a class that can be...
asked 15 minutes ago -
A project has a service life of five years with the initial
investment outlay of $200,000....
asked 11 minutes ago -
Employee develop involves longer term training and opportunities
that while not immediately needed on a current...
asked 11 minutes ago -
Why is the reticulum the affected compartment of the
stomach?
Group of answer choices
It has...
asked 13 minutes ago -
(Print distinct numbers) C++
Write a program that reads in 10 numbers and displays distinct
numbers...
asked 13 minutes ago -
A 3.0275 g sample of KHP (a primary standard, 1:1 acid:base,
FM=204.23 g/mol) is titrated with...
asked 19 minutes ago -
1. You need to make an aqueous solution of
0.165 M barium acetate for an
experiment...
asked 19 minutes ago -
Let X be a discrete random variable with the following PMF.
Px(k) =
1/4 for k...
asked 23 minutes ago -
ONLY use the information provided here on the
firm's Mission Statement. Written assessment must include
(1)...
asked 33 minutes ago