A company issued 8%, 10-year bonds with a face amount of $71 million. The market yield for bonds of similar risk and maturity is 9%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Q: On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million, dated…

A: GIVEN   On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million,…

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Q: he selling price of this bond issue was?

A:

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A:

Q: A company issued 8%, 20-year bonds with a face amount of $110 million. The market yield for bonds of…

A: Cash interest=$110,000,000×4%=$4,400,000

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A: Bonds are the financial instruments that are issued by corporations for acquiring capital and funds…

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A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

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A:

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Q: 9. On January 1 of Year 1, Lily Company issued a $100,000, 14%, 10-year bond. Interest is paid…

A: Since you have asked for multiple question we will solve the first question for you as per the…

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A: Present value of bonds payable = Present value of interest payments + Present value of principal  n…

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A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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A: Lets understand the basics. When market interest rate is more than the bond interest rate bond is…

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A: Given that: Face value of zero coupon bonds = $5.7 million Period of bonds = 6 years Issue price =…

Q: what is the carrying value of the bonds after one year?

A: Carrying Value of Bonds It is the total of bond's face value and  any un-amortized premiums or…

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A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

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Q: ABC Corporation plans to issue an 8%, 15-year, P5,000,000 face value bonds. It will incur P300,000…

A: Here, we are required to calculate the cost of the bond by the yield to maturity formula and the…

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A: Premium on bonds payable = Cash proceeds from issuance of bonds - Par value of bonds Semi annual…

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A: Solution: Introduction:  A bond is an instrument of financial indebtedness of a bond issuer company…

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A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

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A: The price for bond implies to the consideration amount paid by investor for purchasing bond. In…

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A: Number of bonds issued  = 53 Annual Coupon of each bond ($990 * 8%) = $79.20

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A: Total Interest expense over the life of the bonds = Coupon payments over the life of the bonds +…

Q: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest…

A: Amortization of bond discounts using Effective Method:   The issuance of bond at a price lower than…

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Q: On January 1, 20x1, Cat Co. issued $1 million par value bonds at 104. The bonds have a coupon rate…

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A: Bonds are the debt securities which are issued by the organizations whether private or government.…

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A: Bonds will pay interest on face value of bonds  Interest rate=11% Duration of bond is 10 years…

Q: nviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…

A: Solution 1: Cash proceeds = Par value * 87.5%  = 250000 *87.5%  = $218,750

Q: At the beginning of the current year, Candice Company acquired bonds with face amount of P3,000,000…

A:

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A: In this numerical has covered the concept of Bonds Payable

Q: A company issued 5%, 10-year bonds with a face amount of $80 million. The market yield for bonds of…

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A: Bond refers to the borrowing security that is issued by the companies to raise funds from the market…

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A: Present Value: The value of today’s amount expected to be paid or received in the future at a…

Q: A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of…

A: