Compute the price of the bonds on their issue date
Can you help please?
On Jan 1 a company issues bonds with a par value of $300,000. The bonds mature in 5 years and pay 8% annual interest each June 30 and Dec 31. On the issue date, the market rate of interest is 6%. Compute the price of the bonds on the issue date. The following information is taken from present value tables:
Present Value of annuity for 10 periods at 3%... 8.5302
Present Value of annuity for 10 periods at 4%... 8.1109
Pressent value of 1 due in 10 periods at 3%... 0.7441
Pressent value of 1 due in 10 periods at 4%... 0.6756
To compute trend percents the analyst should:
To compute trend percents the analyst should:
A. Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number.
B. Subtract the analysis period number from the base period number.
C. Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100.
D. Compare amounts across industries using Dun and Bradstreet.
E. All of the above.
To compute trend percents the analyst should:
Use the balance sheets of Sando shown below to calculate the following ratios for 2008 (round to the hundredths):
(a) Current ratio.
(b) Acid-test ratio.
(c) Debt ratio.
(d) Equity ratio.