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-   -   More Bonds? (https://www.askmehelpdesk.com/showthread.php?t=181403)

  • Feb 7, 2008, 10:37 AM
    confused_college_student
    More Bonds?
    What does calling a bond mean? I am so stressed over this stuff!

    After calling 3,000 of its $1,000 face value bonds, Donovan Enterprises reported a loss from the event of $63,000. The book value of the bonds at the call date was $1,477,500 and the market value was $1,515,000. What total amount was paid by the company to call the bonds?
    a. $1,452,000
    b. $1,489,500
    c. $1,503,000
    d. $1,540,500

    Donaldson Company issued $5,000 of 10-year bonds paying 10% annual interest. The current market rate of interest on comparable issues is 12%. What is the issue price of the bonds?
    a. $4,435
    b. $4,253
    c. $5,615
    d. $5,000

    Thanks.

    Julie
  • Feb 7, 2008, 10:57 AM
    Scottish2008
    I am not trying to steep on your toes. But it would be nice if you showed us your answer and if you are wrong we can help you correct your answer or lead you in the right direction to get your answer right. We can't do all your home work for you. Try it and get back to us. I look forward to your reply.
  • Feb 7, 2008, 10:59 AM
    confused_college_student
    Quote:
    Originally Posted by Scottish2008
    I am not trying to steep on your toes. But it would be nice if you showed us your answer and if you are wrong we can help you correct your answer or lead you in the right direction to get your answer right. We can't do all your home work for you. Try it and get back to us. I look forward to your reply.

    I don't know how to do them at all. That is why I asked someone to explain it to me. I don't want someone to do it for me. I want to know how to do it. My book doesn't explain it.
  • Feb 7, 2008, 11:07 AM
    Scottish2008
    Ok
    If you read the last sentience in both questions. You well find the answer. The 2nd question is right in front of you.
  • Feb 7, 2008, 12:05 PM
    confused_college_student
    Quote:
    Originally Posted by Scottish2008
    Ok
    If you read the last sentience in both questions. You well find the answer. the 2nd question is right in front of you.

    The answer is only right in front of you if you understand accounting! I have no idea how to solve either of these problems.
  • Feb 8, 2008, 06:56 AM
    Scottish2008
    Quote:
    Originally Posted by confused_college_student
    The answer is only right in front of you if you understand accounting! I have no idea how to solve either of these problems.
    Are you taking accounting as a course? Because this does look like home work. Not trying to be out of line. If your not taking accounting then where are you getting these questions? Are you helping some one else? Please let me know. I could be wrong and you are just studying on your own to get into the swing of things before taking accounting courses. Please get back to me. Thanks
  • Feb 8, 2008, 09:01 PM
    confused_college_student
    Quote:
    Originally Posted by Scottish2008
    Are you taking accounting as a course? Because this does look like home work. Not trying to be out of line. If your not taking accounting then where are you getting these questions? Are you helping some one else? Please let me know. I could be wrong and you are just studying on your own to get into the swing of things before taking accounting courses. Please get back to me. Thanks
    What is your problem? Yes, they were homework questions, that is why I posted them in the homework help section. Accounting is my last course in my MBA and my book sucks. I don't need your help anymore, I found someone willing to explain it to me. Thanks anyway.

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