For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round your inter...
For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round your intermediate calculations.)
| a. | Gray Co. issued $58,000 of 6 percent bonds at 101 1/2 | $_______ | Discount or Premium? |
| b. | Bush, Inc. issued $81,000 of 10-year, 6 percent bonds at 95 1/2 | $_______ | Discount or Premium? |
| c. | Oak, Inc. issued $184,000 of 20-year, 6 percent bonds at 102 | $_______ | Discount or premium? |
| d. | Willow Co. issued $160,000 of 15-year, 7 percent bonds at 95 | $_______ | Discount or premium? |
Homework Answers
| A) 5800*1.5% | 870 premium |
| B) 81000*4.5% | 3645 Discount |
| C) 184,000*2% | 3680 premium |
| D) 160,000*5% | 8000 Discount |
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For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round your inter...
ework Saved Help Soy Exercise 7-18 Determining the amount of bond premiums and discounts LO 7-8,...
ework Saved Help Soy Exercise 7-18 Determining the amount of bond premiums and discounts LO 7-8, 7-9 Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermedia calculations.) a. Gray Co, issued $63,000 of 6 percent bonds at 103 1/2 Bush, Inc. issued $91,000 of 10-year, 6 percent bonds at 95 1/2. Oak, Inc. issued $198,000 of 20-year, 6 percent bonds at 103. d. Willow Co. issued $163,000 of...
Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount
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Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate...
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Exercise 9-48 (Algorithmic) Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is...
Exercise 9-48 (Algorithmic)
Bond Premium and Discount
Markway Inc. is contemplating selling bonds. The issue is to be
composed of 750 bonds, each with a face amount of $800.
1. Calculate how much Markway is able to borrow
if each bond is sold at a premium of $30.
$
2. Calculate how much Markway is able to borrow
if each bond is sold at a discount of $10.
$
3. Calculate how much Markway is able to borrow
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X Your answer is incorrect. Presented below are two independent situations. (a) Sunland Co. sold $1,970,000...
X Your answer is incorrect. Presented below are two independent situations. (a) Sunland Co. sold $1,970,000 of 12%, 10-year bonds at 103 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Sunland uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to O decimal places, e.g. 38,548.) Interest...
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Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.4 percent, a YTM of 7.4 percent, and has 19 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7.4 percent, a YTM of 9.4 percent, and also has 19 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000. a. What are the prices of...
ework Saved Help Soy Exercise 7-18 Determining the amount of bond premiums and discounts LO 7-8, 7-9 Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermedia calculations.) a. Gray Co, issued $63,000 of 6 percent bonds at 103 1/2 Bush, Inc. issued $91,000 of 10-year, 6 percent bonds at 95 1/2. Oak, Inc. issued $198,000 of 20-year, 6 percent bonds at 103. d. Willow Co. issued $163,000 of...
Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) a. Pear, Inc. issued $214,000 of 10-year, 8 percent bonds at 103. b. Apple, Inc. issued 599,000 of five-year, 12 percent bonds at 97 c. Cherry Co. issued $181,000 of five-year, 6 percent bonds at 101 1/4 d. Grape, Inc. issued $70,000 of four-year, 8 percent bonds at 98.
Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) Cash Proceeds Discount or Premium a. Pear, Inc. issued $169,000 of 10-year, 8 percent bonds at 102. Apple, Inc. issued $75,000 of five-year, 12 percent bonds at 99. Cherry Co. issued $180,000 of five-year, 6 percent bonds at 101 1/4. d. Grape, Inc. issued $43,000 of four-year, 8...
Bond P is a premium bond with a coupon rate of 8.8 percent. Bond D is a discount bond with a coupon rate of 4.8 percent. Both bonds make annual payments, have a YTM of 6.8 percent, have a par value of $1,000, and have thirteen years to maturity. a. What is the current yield for Bond P? For Bond D? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)...
X Your answer is incorrect. Presented below are two independent situations. (a) Sunland Co. sold $1,970,000 of 12%, 10-year bonds at 103 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Sunland uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to O decimal places, e.g. 38,548.) Interest...
Bond P is a premium bond with a coupon rate of 8.6 percent. Bond D is a discount bond with a coupon rate of 4.6 percent. Both bonds make annual payments, have a YTM of 6.6 percent, have a par value of $1,000, and have eleven years to maturity. a. What is the current yield for Bond P? For Bond D? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.)...
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