On January 1, 2018 a company issued a 4-year, $600,000 bond with a coupon rate of...
On January 1, 2018 a company issued a 4-year, $600,000 bond with a coupon rate of 3% and a market rate of 4% on the date of issuance. Interest is paid semi-annually on June 30th and December 31st. What is the issue price of the bond?
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On January 1, 2018 a company issued a 4-year, $600,000 bond with
a coupon rate of...
The Simpkins II Corporation issued a 5-year $800,000 bond at a coupon rate of 8% on...
The Simpkins II Corporation issued a 5-year $800,000 bond at a coupon rate of 8% on January 1, 2018. Interest is paid semi-annually on June 30 and December 31 of each year. The market yield for bonds of similar risk and maturity is 10%. Required: A. Is this a premium or discount bond? B. Determine the price of the bond (using Present Value Tables) C. Determine the total amount of interest expense for this bond at maturity (prior to making...
Anderson/ Thurow Company issued $1,000,000 of five year bonds on Jan 1, 20X1. The bonds carried...
Anderson/ Thurow Company issued $1,000,000 of five year bonds on Jan 1, 20X1. The bonds carried a face or coupon rate of 12% with interest to be paid semi-annually on June 30th and Dec 31st. At the issuance date, the market interest rate for such bonds was 10%. A. Calculate the issuance price for the bonds and show the journal entry to record their issuance. B. Provide an amortization table for the first two periods. C. Show the journal entries...
Ajax Company issued a $10,000,000 dollar bond on Oct 1, 2019, with a coupon rate of...
Ajax Company issued a $10,000,000 dollar bond on Oct 1, 2019, with a coupon rate of 8.84% and a market rate of 7.44%. The bonds have a 30-year maturity and interest on the bonds are paid semi-annually on April 1 and Oct 1. Answer the following questions regarding this bond: What is the face value of this bond? How many bonds are being issued? What is the is issue price of these bonds? What is the semi-annual amount of interest...
Please answer parts A through D. On January 1st, 2016, Whale Boats Co. issued a 6...
Please answer parts A through D.
On January 1st, 2016, Whale Boats Co. issued a 6 year $680,000 bond with a 2% coupon rate paid quarterly on March 31st, June 30th, September 30th, and December 31st for $660,000. Whale Boats Co. records interest quarterly. How much cash does the firm receive on January 1st, 2016? Your Answer: Answer On January 1st, 2016, Whale Boats Co. issued a 8 year $600,000 bond with a 9% coupon rate paid quarterly on March...
On January 1, 2018, a corporation issued a $100,000, 5-year maturity, 10% bond. The interest is...
On January 1, 2018, a corporation issued a $100,000, 5-year maturity, 10% bond. The interest is payable semi- annually on June 30 and December 31. The market interest rate is 10% at issuance. What is the interest expense for the year ending December 31, 2018? A. $12,000 B. $10,741 C. $10,000 D. $6,000 E. $5,386 plz use computer and plz explain with good calculations.. plz
The Wildcat Company issued 8% bonds(stated rate), dated January 1, with a face amount of $20...
The Wildcat Company issued 8% bonds(stated rate), dated January 1, with a face amount of $20 million. The bonds mature on December 31, year 10. For bonds of similar risk at maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. 1. Calculate the Bond Price and Enter in the Yellow Highlighted Cell: Coupon Payment PV Face Value PV Total Bond Price: 2. Record the journal entry to record the issuance of the bond...
On January 1, 2018, White, Inc. issues $1,000,000 total face value, 10-yr bonds with an annual...
On January 1, 2018, White, Inc. issues $1,000,000 total face value, 10-yr bonds with an annual stated interest rate of 5%. Interest is paid semi-annually on June 30th and December 31st. The company received $559,260 upon issuance. (Solutions posted online) Period Cash Paid Interest Expense Amortization of Discount/Premium Unamortized Premium/Discount Bonds Carrying Value (Book Value) Issuance Don’t use Don’t use Don’t use 6/30/2018 12/31/2018 6/30/2019 Are the bonds issued at a premium, a discount, or at face value? What is...
On January 1st, 2016, Whale Boats Co. issued a 9 year $670,000 bond with a 3%...
On January 1st, 2016, Whale Boats Co. issued a 9 year $670,000 bond with a 3% coupon rate paid quarterly on March 31st, June 30th, September 30th, and December 31st for $900,000. Whale Boats Co. records interest quarterly. What is the premium amortization recorded by the firm on March 31st, 2017 (if no premium is recorded answer 0)? Assume the firm amortizes premium using the straight-line method.
On January 1, 2018, ABC & Co. issues convertible bonds with a maturity of 5 years....
On January 1, 2018, ABC & Co. issues convertible bonds with a maturity of 5 years. The par value of the bonds is $400,000, the coupon rate is 6%, and the compounding period is semi-annual with interest paid on June 30th and December 31st. The market prices these bonds using an interest rate (effective rate) of 4% compounded semi-annually. Each $1,000 bond is convertible to 100 shares of ABC & Co. common stock. 1. On July 1, 2018, the company...
Question 7 (1 point) On January 1st, 2016, Whale Boats Co. issued a 9 year $800,000...
Question 7 (1 point) On January 1st, 2016, Whale Boats Co. issued a 9 year $800,000 bond with a 5% coupon rate paid quarterly on March 31st, June 30th, September 30th, and December 31st for $680,000. Whale Boats Co. records interest quarterly. What is the discount amortization recorded by the firm on March 31st, 2016 (if no discount is recorded answer O)? Assume a straight-line method of amortizing the discount. Your Answer: Answer Question 8 (1 point) On January 1st,...
Please answer parts A through D.
On January 1st, 2016, Whale Boats Co. issued a 6 year $680,000 bond with a 2% coupon rate paid quarterly on March 31st, June 30th, September 30th, and December 31st for $660,000. Whale Boats Co. records interest quarterly. How much cash does the firm receive on January 1st, 2016? Your Answer: Answer On January 1st, 2016, Whale Boats Co. issued a 8 year $600,000 bond with a 9% coupon rate paid quarterly on March...
The Wildcat Company issued 8% bonds(stated rate), dated January 1, with a face amount of $20 million. The bonds mature on December 31, year 10. For bonds of similar risk at maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. 1. Calculate the Bond Price and Enter in the Yellow Highlighted Cell: Coupon Payment PV Face Value PV Total Bond Price: 2. Record the journal entry to record the issuance of the bond...
Question 7 (1 point) On January 1st, 2016, Whale Boats Co. issued a 9 year $800,000 bond with a 5% coupon rate paid quarterly on March 31st, June 30th, September 30th, and December 31st for $680,000. Whale Boats Co. records interest quarterly. What is the discount amortization recorded by the firm on March 31st, 2016 (if no discount is recorded answer O)? Assume a straight-line method of amortizing the discount. Your Answer: Answer Question 8 (1 point) On January 1st,...
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