Interest = 700000*12%/2 = 42000
Discount rate = 10%/2 = 5%
No. of periods = 5 yrs * 2 = 10 periods (semi annual)
Issue price of the bond = (42000*7.72173) + (700000*0.61391)
= $754049.66
Ex. 2-Calculate market price of a bond. On January 1, 2014 Lance Co. issued five-vear bonds with a face value of $700.0...
A PROBLEM D: On January 1, 2020 Lance Co. issued five-year bonds with a face value of $1,000,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% 62092 Present value of 1 for 5 periods at 12% 56743 Present value of 1 for 10 periods at 5% . 61391 Present value of 1...
Problem D PROBLEM D: On January 1, 2020 Lance Co. issued five-year bonds with a face value of $1,000,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% Present value of 1 for 5 periods at 12% Present value of 1 for 10 periods at 5% Present value of 1 for 10 periods...
QUESTION 35 On January 1, 2020 Mercy Grace Hospital issued five-year bonds with a face value of $800,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% 62092 Present value of 1 for 5 periods at 12% 56743 Present value of 1 for 10 periods at 5% 61391 Present value of 1 for...
On January 1, 2020 Wildhorse Co. issued five-year bonds with a face value of $760,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% 0.62092 Present value of 1 for 5 periods at 12% 0.56743 Present value of 1 for 10 periods at 5% 0.61391 Present value of 1 for 10 periods at...
$50,000 zero-interest bear PROBLES The Problem C. On January 1, 2019, Western sold equipment to Jones Company, accepting a $50,000 zero-interese note to be paid in full at the end of the third year (December 31, 2021). The implicit interest rate is 10%. The presa value factor for a single amount (n=3,1 = 1096) -0.75132 a. At what amount will Western record the sale? Carrying amount of note b. Complete the amortization table below. Schedule of Note discount Amortization Effective...
080) + $10,000 b. $10,000 x 1.360 x 4 c. ($10,000 x 1.080) + ($10,000 x 1.166) + ($10,000x 1.260) + ($10,000 x 1.360) d. $10,000 x 1.080 x 4 Problem (40 points) On January 1, 2019 Lance Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate (coupon rate) of 6% payable annually. The bonds were sold to yield an effective rate (market rate) of 5%. Present value table factors are: Present value of...
Use the following tables to calculate the present value of a $506,000 @ 5%, 5-year bond that pays $25,300 interest annually, if the market rate of interest is 10%. Round to the nearest dollar Present Value of $1 Present Value of Annuity of $1 6% 94340 Periods 5% 6% 7% 10% | Periods 5% 10% 95238 .94340 .93458.909091 90703 .89000 .87344 .826452 86384 .83962 .81630 751313 82270 .79209.76290 683014 78353 74726 .71299 .62092 74622 70496 .66634.56447 71068 .66506 .62275 .51316...
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On January 1, 2021, Marigold Co. issued ten-year bonds with a face value of $4,200,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.386 Present value of 1 for 10 periods at 12% 0.322 Present value of 1 for 20 periods at 5% 0.377 Present value of 1 for 20 periods at 6% 0.312...
On January 1, 2019, Saints issued $4,500,000, 4% 5-year bonds dated January 1, 2019. The bonds pay interest semiannually on June 30 and December 31 . The bonds were issued to yield 6%. 2.0% | 3.0% 40% 6.0% 0.90573 0.86261 0.82193 0.74726 0.82035 0.74409 0.67556 0.55839 ent value of an ordinary annuity for 5 periods 4.71346 4.57971 4.45182 421236 Present value of a single sum for 5 periods Present value of a single sum for 10 periods 8.53020 8.11090 7.36009...