Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the...
Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the bonds mature in 10 years. The bonds are issued with an effective yield of 4.125%
The bonds are issued at a [ Select ] ["Discount", "Premium", "Par"]
The bonds are sold for [ Select ] ["less than", "more than"] $500,000
How much is each semi-annual interest payment to bond holders? [ Select ] ["$20,000", "$20,625", "$10,312.50", "$10,000"]
Homework Answers
The Bonds are issued at a Discount.
The bonds are sold for less than $500000
Semi annual interest payment to bond holder = (500000*2%) = 10000
Add Answer to:
Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the...
First picture is the main question and the others are the answer choices. Question 1 1...
First picture is the main question and the others are the answer
choices.
Question 1 1 pts Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the bonds mature in 10 years. The bonds are issued with an effective yield of 4.125% The bonds are issued at a [Select] The bonds are sold for [Select] $500,000 How much is each semi-annual interest payment to bond holders? [Select] Question...
On January 1, Brothers Corporation issues $10,000,000 of 6%, 15 year bonds, with interest paid semi-annually....
On January 1, Brothers Corporation issues $10,000,000 of 6%, 15 year bonds, with interest paid semi-annually. The market rate of interest is 8%. What is the face amount of the bond offering? 10,000,000 * ((1)/(1+.04)^30)) = $3,083,186.68 What will the actual semi-annual interest payment be? (1-(1+.04)^-30)/(.04) = 17.29 * = What interest rate is used to compute the present value? Face interest rate or market rate? How many interest periods will there be in this bond offering? Based upon the...
A bond that has a face value of $2,500 and coupon rate of 4.80% payable semi-annually...
A bond that has a face value of $2,500 and coupon rate of 4.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase pric of the bond on February 10, 2015 when the yield was 5.30% compounded semi-annually. Round to the nearest cent A $8,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 6 years before maturity when the yield rate was 4.50% compounded semi-annually. a. Calculate the purchase price of the bond. $0.00 Round...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
On January 1, Brothers Corporation issues $10,000,000 of 6%, 15 year bonds, with interest paid semi-annually....
On January 1, Brothers Corporation issues $10,000,000 of 6%, 15 year bonds, with interest paid semi-annually. The market rate of interest is 8%. Before we calculate the price, let’s answer a few basis questions which will be important in determining the price. What is the face amount of the bond offering? What will the actual semi-annual interest payment be? What interest rate is used to compute the present value? Face interest rate or market rate? How many interest periods will...
Mind Explorers issues bonds with a stated interest rate of 7%, face value of $200,000, and...
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.
Corp-X issued corporate bonds one year ago at par with a face value of $1000, an annual coupon rate of 6%(paid semi annually), and a 20 years to maturity. At the moment, bonds of equivalent risk and m...
Corp-X issued corporate bonds one year ago at par with a face value of $1000, an annual coupon rate of 6%(paid semi annually), and a 20 years to maturity. At the moment, bonds of equivalent risk and maturity to these Corp-X bonds are being issued at par with a coupon rate of 5.5% per year(paid semi annually) 1. At the time that Corp-X bonds were issued, what was the Yield to Maturity of the bonds? And What is the current...
The company issues 6% 10-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The m...
The company issues 6% 10-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 6.1%. n% 106.00%0.55839 7.3601 106.10%0.55315 7.3253 20 3.00% 0.55368 14.8775 203.05%0.54833 14.8089 PV PVA ROUND ANSWERS TO NEAREST DOLLAR What is the issue price of the bond? $ .Record the issuance of the bond: 3. What is the interest expense for the first interest payment? $_ What is the bond liability after the first interest payment? $...
_2. Bonds with par value of $500,000 carrying a stated interest rate of 6% payable semiannually...
_2. Bonds with par value of $500,000 carrying a stated interest rate of 6% payable semiannually on March 1 and September 1 were issued on July 1. The proceeds from the issue amounted to $510,000. The best explanation for the excess received over par value is: a. the bonds were sold at a premium. b. the bonds were sold at a higher effective interest rate. c. the bonds were issued at par plus accrued interest d. no explanation is possible...
18. Sand Explorers issues bonds due in 10 years with a stated interest rate of 8%...
18. Sand Explorers issues bonds due in 10 years with a stated interest rate of 8% and a face value of $190,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds (EV of S1, PV of S1, EVA of 51. PVA of SI EVAD. 51 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $149,966 $234.429 $190,000 $203.502. 19....
First picture is the main question and the others are the answer
choices.
Question 1 1 pts Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the bonds mature in 10 years. The bonds are issued with an effective yield of 4.125% The bonds are issued at a [Select] The bonds are sold for [Select] $500,000 How much is each semi-annual interest payment to bond holders? [Select] Question...
A bond that has a face value of $2,500 and coupon rate of 4.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase pric of the bond on February 10, 2015 when the yield was 5.30% compounded semi-annually. Round to the nearest cent A $8,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 6 years before maturity when the yield rate was 4.50% compounded semi-annually. a. Calculate the purchase price of the bond. $0.00 Round...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
The company issues 6% 10-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 6.1%. n% 106.00%0.55839 7.3601 106.10%0.55315 7.3253 20 3.00% 0.55368 14.8775 203.05%0.54833 14.8089 PV PVA ROUND ANSWERS TO NEAREST DOLLAR What is the issue price of the bond? $ .Record the issuance of the bond: 3. What is the interest expense for the first interest payment? $_ What is the bond liability after the first interest payment? $...
_2. Bonds with par value of $500,000 carrying a stated interest rate of 6% payable semiannually on March 1 and September 1 were issued on July 1. The proceeds from the issue amounted to $510,000. The best explanation for the excess received over par value is: a. the bonds were sold at a premium. b. the bonds were sold at a higher effective interest rate. c. the bonds were issued at par plus accrued interest d. no explanation is possible...
18. Sand Explorers issues bonds due in 10 years with a stated interest rate of 8% and a face value of $190,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds (EV of S1, PV of S1, EVA of 51. PVA of SI EVAD. 51 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $149,966 $234.429 $190,000 $203.502. 19....
Most questions answered within 3 hours.
-
D. A student completed 20 courses in the School of Arts and
Sciences. Her grades in...
asked 1 hour ago -
teo
pucks moving on a frictionless air table are about to collide. the
1.5 kg puck...
asked 1 hour ago -
Problem #1
The area between Z = 0 and Z = 2.50
The area between Z...
asked 2 hours ago -
1. What is the meaning of the term communication style?
2. What are the benefits to...
asked 2 hours ago -
9.) You are buying a car that cost $26,500. You make payments of
$412 each month...
asked 2 hours ago -
. Suppose a discrete random variable has probability
distribution
P(x) = .2 if x = 0...
asked 3 hours ago -
Under the influence of its drive force, a snowmobile is moving
at a constant velocity along...
asked 4 hours ago -
Why do organizations decline? What steps can top
management take to halt, decline, and restore organizational...
asked 4 hours ago -
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 5 hours ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 6 hours ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 8 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 8 hours ago