 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Bonds
A company issues bonds with a par value of $800,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in two semiannual payments. On the issue date, the market rate of interest is 8%. Compute the price of the bonds on their 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 |
||||
Check out some similar questions!
Sears issues bonds with a par value of $175,000 on January 1, 2009. The bonds' annual contract rate is 4%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 6%, and the bonds are sold for $165,523. ...
I need help with finding interest expense on bonds. I can't find the interest expense from the information below for problems 1 & 2. I tried using examples from my book but I still can't figure it out. Atlantis Inc. produces and sells voltage regulators. On July 1, 2007, Atlantis Inc. issued...
Journal entires for bonds and computing interest on bonds -------------------------------------------------------------------------------- I am having a difficult time understanding bonds. Here is a question that stumps me: Record the sale of $4 million of 10 year, 6% corporate bonds...
General Toys, Inc. sold five year bonds having a face value of $100,000 and a coupon rate of 7% when the market rate was 9%. The present value of $1 at 9% for five periods is $0.6499. The present value of a $1 annuity for 5 periods at 9% is $3.8897. At what price did these bonds sell? I came up...
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
