If a $6,000, 10%, 10-year bond, was issued on October 1, 2020 and the market rate was 8% at the time, then how much will the bond sell for at the time of issue if interest is payable annually? (Hint: calculation is not needed) X ➡ $5,600 $6,000 $6,805 $5,454
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- Give typing answer with explanation and conclusion 1- Imagine the bond above displayed the following details: $10,000 Matures: January 31, 2030; Interest of $200 payable June 30 and December 31 of each year. Can you calculate the annual effective interest rate for this bond? a)2% b)4% c)6% d)One cannot tell.page On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest on a semiannual basis on June 30 and December 31 each year. The market interest rates were slightly higher than 5% when the bonds were sold. Were these bonds issued at a premium or discount? Will the semiannual interest expense on these bonds be more than or less than the amount of interest paid on each payment date? O a. The bonds were issued at a premium, and the semiannual interest expense will be less than the amount of interest paid on each payment date. O b. The bonds were issued at a premium, and the semiannual interest expense will be more than the amount of interest paid on each payment date. O c. The bonds were issued at a discount, and the semiannual interest expense will be more than the amount of interest paid on each payment date. O d. The bonds were issued at a discount, and the semiannual interest expense will be less than the amount of interest paid on each payment…29. Bond Issue Price On December 31, 2022, Callahan Auto issued $1,500,000 of 8%, 10-year bonds. Interest is payable semiannually on June 30 and December 31. Required: What is the issue price if the bonds are sold to yield 6%? (Note: Round to the nearest dollar.)
- A $10 000 bond bearing interest at 5% payable semi-annually is redeemable at par on August 04, 2035. The bond is sold on March 24, 2021, to yield 5.3% compounded semi-annually. How much is the bond sold for? B I 2: II !!Suppose a State of New Mexico bond will pay $1,000 eight years from now. If the going interest rate on these 8- year bonds is 5.5%, how much is the bond worth today? Oa. $792.02 Ob. $718.39 O c. $684.18 O d. $754.31 Oe. $651.602. DEF Company will issue $8,000,000 in 10%, 10-year bonds when the market rate of interest is 7%. Interest is paid semiannually. Required: a. Will this interest structure result in a Premium for DEF company or a Discount? b. How much cash will be received from the issuance of the bond? c. How much will the semi-annual interest payment be on the bond?
- Current Attempt in Progress Blossom Corp. issued $600,000 of 3-year, 4% bonds on May 1, 2024. The market interest rate when the bonds were hound was Interest is payable quarterly. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) What is the number of interest payments that will be made over the life of the bond? Number of interest payments. paymentsProblem #1 Assume that on January 2, 2020, the Valenzuela Corporation issues P1,000,000, 5-year term bonds with a stated interest rate of 12%. The bonds pay interest every January 2 and July 1. The bonds were issued to yield 12%, which is another way of saying that they were issued at par, and thus the company received the full P1,000,000. The next interest payment is due on January 2, 2021. The corporation’s year-end is December 31, and the firm must make an adjusting entry to record interest expense for the six-month period, July 1 to December 31. Requirement(s): The journal entry to record this bond issue is.. The journal entry to record required annual interest payment of 6% This adjusting entry and the entry to record the subsequent payment are:On February 1, 2023, what was the value of a P7,000, bond with 5% compounded semiannually due on January 1, 2027, if money is worth 10%, m = 2 and interest dates January 1 and July 1.
- Use the paper copy of the Present Value Tables, provided on Canvas, to answer the following question Williams Company issued 200 of its B, $1,000, 5-year bonds on January 1, 2023. On that date, the market rate of interest was 12%. The bonds pay interest quarterly How much would an investor pay for this bond? Select one O a $150,000 Ob $170,308 O C$150,066 d $114129 e $107.973 O Previous Save Answers Next O et Selfle Perem 2023-10 Screensh 2023-104 reenshot 03.03 PM eenshot 00.32 PMHelp Seve & E On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1.000.000 and an annual stated interest rate of 8%. Interest payments are made semi-annually on June 30th and December 31st. The bonds were issued for $875,378, when the market rate of interest was 10%. What amount of interest expense will Lambda record for 2021? Multiple Choice $43,957 $92,462 S80,000 $87,726On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest on a semiannual basis on June 30 and December 31 each year. The market interest rates were slightly higher than 5% when the bonds were sold. How much interest will be paid semiannually (each year on June 30 and on December 31) on these bonds? 31 Multiple Choice $1,000,000 $2,000,000 Slightly less than $1,000,000 Slightly more than $2,000,000
