 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
how to calculate bonds and find issue price
Bond Issue:
On January 1, 20x8, Xeraz Corporation issued $1,000,000 5 year bond dated Jan 1, 20x8 with interest payable on July 1 and Jan 1. The bonds had a face interest rate of 5%. The effective interest rate in the market is 8%. The company fiscal year end is December 31, 2008. question: Calculate the present value of the bond issue to determine its selling price |
||||
|
||||
|
Here's some threads where I've answered the method of how to do these. Note that there's different ways of computing present values and I can't know which way you're supposed to do them. I did include a thread where I put the algebraic equations if you want them. https://www.askmehelpdesk.com/financ...ce-199941.html https://www.askmehelpdesk.com/financ...nd-181604.html https://www.askmehelpdesk.com/accoun...ds-193231.html |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
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...
Can anyone 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...
A company has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is 7%.
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
|
