ZuoTi.Pro
Question

A company issues 10%, 5-year bonds with a par value of $270,000 on January 1 at...

A company issues 10%, 5-year bonds with a par value of $270,000 on January 1 at a price of $280,682, when the market rate of interest was 9%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

  • $27,000.

  • $24,300.

  • $13,500.

  • $12,150.

  • $0.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Semi Annual Interest Payment = 270,000 x 9% *6/12

=12,150

So each Semi annual interest Payment is 12,150

0 0
Add a comment
Know the answer?
Add Answer to:
A company issues 10%, 5-year bonds with a par value of $270,000 on January 1 at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A company issues 10%, 6-year bonds with a par value of $230,000 on January 1 at...

    A company issues 10%, 6-year bonds with a par value of $230,000 on January 1 at a price of $240.486, when the market rate of interest was 9%. The bonds pay interest semiannually. The amount of each semiannual interest payment is Multiple Choice Ο $10,350. Ο 520,700 Ο Ο $0 Ο Ο $11,500. Ο Ο $23,000

  • MC Qu. 129 A company issues... A company issues 9%, 5-year bonds with a par value...

    MC Qu. 129 A company issues... A company issues 9%, 5-year bonds with a par value of $250,000 on January 1 at a price of $260,139, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: Multiple Choice: $22,500. $20,000. $10,000. $11,250. $0. MC Qu. 130 A company issues... A company issues 6% bonds with a par value of $80,000 at par on January 1. The market rate on...

  • A company issues 8%, 8-year bonds with a par value of $130,000 on January 1 at...

    A company issues 8%, 8-year bonds with a par value of $130,000 on January 1 at a price of $137,861, when the market rate of interest was 7%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: points (8 01:24:53 0 $10,400 0 0 0 $4,550. 0

  • Albatross company issues 6%, 7-year bonds with a par value of $350,000 on January 1 at...

    Albatross company issues 6%, 7-year bonds with a par value of $350,000 on January 1 at a price of $327,000, when the market rate of interest was 7%. The bonds pay interest semiannually. The amount of cash paid each semiannual payment is: $0. $24,500. $21,000. $12,250. $10,500.

  • A company issues 9%, 4-year bonds with a par value of $160,000 on January 1 at...

    A company issues 9%, 4-year bonds with a par value of $160,000 on January 1 at a price of $165,386, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: Multiple Choice $14,400. $0. $12,800. $7,200. $6,400 2) A company issued 5-year, 5% bonds with a par value of $91,000. The company received $88,947 for the bonds. Using the straight-line method, the amount of interest expense for the first...

  • A company issues 696, 7-year bonds with a par value of $240,000 on January 1 at...

    A company issues 696, 7-year bonds with a par value of $240,000 on January 1 at a price of $254,029, when the market rate of interest was 5% The bonds pay interest sem annually The amount of each sem annual terest payment is Multiple Choice $6,000 $14,400 $12,000 $7,200 $0

  • A company issues 9%, 7-year bonds with a par value of $260,000 on January 1 at...

    A company issues 9%, 7-year bonds with a par value of $260,000 on January 1 at a price of $273,732, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: A) $23,400. B) $11,700. C) $0. D) $20,800. E)$10,400. A company must repay the bank a single payment of $26,000 cash in 6 years for a loan it entered into. The loan is at 7% interest compounded annually. The...

  • Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments....

    Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 %, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life...

  • Morgan Company issues 9%, 20-year bonds with a par value of $840,000 that pay interest semiannually. The amount paid to...

    Morgan Company issues 9%, 20-year bonds with a par value of $840,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is. 21 Multiple Choice points (8 02:14:26 O $75,600 O $37,800. O $67,200 O $33,600. 0 $420,000

  • Paulson Company issues 10%, four-year bonds, on January 1 of this year, with a par value...

    Paulson Company issues 10%, four-year bonds, on January 1 of this year, with a par value of $93,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $ 6,593 $ 86,407 (1) June 30, first payment 5,769 87,231 (2) December 31, second payment 4,945 88,055 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT