3. On July 1, 2000, MB corp. sells a 5,000,000 issue of 6% bonds paying coupons on July 1 and December 1. The issue is redeemable in Equal instalments at the end of each year for 8 years. On December 1, 2004, how much is the value of all outstanding bonds to yield 5%?
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- Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for $103,000. From this information, we know that the market rate of interest was ________. A. more than 7% B. less than 7% C. equal to 7% D. equal to 1.3%On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.1. ABC Corporation has decided to sell ₱1000 bonds which will pay semiannual dividends of ₱20 (2% per period) and will mature in 5 years. The bonds are sold at ₱830, but after brokers' fees and other expenses the company ends up receiving ₱760.What is the company's cost of the capital raised through the sale of these bonds? 2. ABC Corporation has decided to sell ₱1000 bonds which will pay semiannual dividends of ₱20 (2% per period) and will mature in 5 years. The bonds are sold at ₱830, but after brokers' fees and other expenses the company ends up receiving ₱760. Is the bond a good buy for an investor who expects a 9% return on his investments?
- 1. ABC Corporation has decided to sell ₱1000 bonds which will pay semiannual dividends of ₱20 (2% per period) and will mature in 5 years. The bonds are sold at ₱830, but after brokers' fees and other expenses the company ends up receiving ₱760. What is the company's cost of the capital raised through the sale of these bonds? 2. ABC Corporation has decided to sell ₱1000 bonds which will pay semiannual dividends of ₱20 (2% per period) and will mature in 5 years. The bonds are sold at ₱830, but after brokers' fees and other expenses the company ends up receiving ₱760. Is the bond a good buy for an investor who expects a 9% return on his investments?3. A student deposits ₱1,000 in a savings account that pays interest at the rate of 6% per year compounded annually. If all the money is allowed to accumulate, how much money will the student have after 12 years? 4. A certain sum of money will be deposited in a savings account that pays interest at the rate of 6% per year compounded annually.…The Pennington Corporation issued a new series of bonds on January1, 1994. The bonds were sold at par ($1,000), had a 12% coupon, and mature in 30 years, onDecember 31, 2023. Coupon payments are made semiannually (on June 30 and December 31).a. What was the YTM on January 1, 1994?b. What was the price of the bonds on January 1, 1999, 5 years later, assuming that interestrates had fallen to 10%?c. Find the current yield, capital gains yield, and total return on January 1, 1999, giventhe price as determined in part b.d. On July 1, 2017, 6½ years before maturity, Pennington’s bonds sold for $916.42. What werethe YTM, the current yield, the capital gains yield, and the total return at that time?e. Now assume that you plan to purchase an outstanding Pennington bond on March 1,2017, when the going rate of interest given its risk was 15.5%. How large a check mustyou write to complete the transaction?Today Melton Corporation's bonds sold for $1087.50. If the bond's annual coupon payment a is $75.00 , it matures in 20 years and the company has a tax rate of 25%, what is after tax cost to the firm of the funds raised through the sale of these bonds. Group of answer choices
- 6. On January 1, 2020, Trader Company issued its 8%, 4 year convertible debt instrument with a face amount of P6,000,000 for P5,900,000. Interest is payable every December 31 of each year. The debt instruments is convertible into 50,000 ordinary shares a par value of P100. When the debt instruments were issued, the prevailing market rate of interest for similar debt without conversion option is 10%. PV of 10% for ordinary annuity of P1 after 4 periods 3.169865PV of 10% after 4 interest period .683013 1. What is the amortized cost of the debt as of December 31, 2022?2. What is the amount of interest expense for the year ended December 31, 2021?Charter Corp. issued1,662 debentures with a $1,000 par value and 6% coupon rate. a. What dollar amount of interest per bond can an investor expect to receive each year from Charter? b. What is Charter's total interest expense per year associated with this bond issue? c. Assuming that Charter pays a 21% corporate tax, what is the company's net after-tax interest cost associated with this bond issue?For items 1-3: The Peninsula Corporation issued a new series of bonds on January 1, 1992. The bonds were sold at par (P1,000), had a 12% coupon, and mature in 30 years, on December 31, 2021. Coupon payments are made semiannually (on June 30 and December 31). What was the YTM on January 1, 1992? What was the price of the bonds on January 1, 1997, five (5) years later, if interest rates had fallen to 10%? Find the current yield, capital gains yield, and total return on January 1, 1997, given the price as determined in part
- Whipple Corp. just issued 245,000 bonds with a coupon rate of 5.81 percent paid semiannually that mature in 30 years. The bonds have a YTM of 6.25 percent and have a par value of $2,000. How much money was raised from the sale of the bonds? a-$885.02 million b-$490.00 million c-$430.22 million d-$460.95 million e-$442.51 million20.) On January 1, 2002, Brownies Corp. issued 1,000 of its 10%, P1,000 bonds for P1,040,000. These bonds were to mature on January 1, 2012 but were callable at 101 any time after December 31, 2005. Interest was payable semiannually on July 1 and January 1. On July 1, 2007, Brownie called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Brownies' gain or loss in 2007 on this early extinguishment of debt was ? 21.) At the beginning of current year, Marble Co. issued 10-year bonds with a face amount of P 5,000,000 and a stated interest rate of 8% payable annually at every year - end. The bonds were priced to yield 10%. PV of 1 for 10 periods at 10% 0.3855 PV of an ordinary annuity of 1 for 10 periods at 10% 6.145 What is the PV of Principal?On January 1, 2012, Sisterakas Corporation purchased P4,000,000 10% bonds for P3,711,520. Sisterakas plans to hold the investment in bonds to maturity. However, if the market interest rates fall sufficiently, Sisterakas will consider selling the investment in bonds to realize associated gain. The bonds were purchased to yield 12%. Interest is payable annually every December 31. The bond mature on December 31, 2016. On December 31, 2012 the bonds were selling at 99. On December 31, 2013, Sisterakas sold P2,000,000 face value bonds at 101, which is the fair value of the bonds on the date, plus accrued interest. Under PAS 39, the unrealized gain to be recognized as component of equity on 12/31/2012 is
