ABC Manufacturing issues a $100,000 face value bond at a discount of $92,788, 5-year maturity, 10% interest paid annually, the yield rate of interest is 10%. Explain why ABC Manufacturing would accept $92,788 for a $100,000 face value bon

Q: Pretty Pets Ltd. issues a $240,000, 8-year, 4% bond that pays interest semi-annually.  If the market…

A:

Q: Marwick Corporation issues 8%, 5 year bonds with a par value of $1,200,000 and semiannual interest…

A: Interest rate on bond : 8/2= 4%  ( Divided by 2 because it is mentioned semiannual interest ) Time =…

Q: A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.1% paid…

A: Computation:

Q: gage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of…

A: Face value =10000 Market price =8900 Coupon =5% MATURITY =9 years  Could =500 Annual

Q: Clancey Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The…

A:

Q: payment of 1 for

A: The correct is ..  d)     A bond can be issued at premium or discount based on the market interest…

Q: ABC Company will issue $5,600,000 in 8%, 10-year bonds when the market rate of interest is 10%.…

A: One of the source of raising the funds by the business entities is issue of debt securities i.e.…

Q: Seaside issues a bond that has a stated interest rate of 12%, face amount of $40,000, and is due in…

A:

Q: A company issues GHS10 million of 6% bonds at a price of GHS100.50 for easch GHS100 nominal value…

A: A bond is a fixed-income security that indicates an investor's debt to a borrower.

Q: A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8%…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: Ruby Corporation is offering P10 000.00, 8% bonds that pays interest quarterly for P8500.00. Jade…

A: Ruby Corporation: Face value = P 10000 Coupon = (8% of 10000) / 4 = P 200 Bond price = P 8500 n = 5…

Q: Allington Corp. issues $560,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

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

Q: On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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

A: Given: Company’s issues = 8% Life of bond = 10 years Par value = $ 250,000 Annual market rate = 5 %…

Q: Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid…

A: Bonds: When the company needs money, the company issues fixed-income security that the investor…

Q: Squabb Corporation issued a $12,000,000, 5-year bond, with a contract rate of 8%. The market rate of…

A: The bonds are the financial instruments for the business which are used to raise money from the…

Q: Company H issues a $20,000,000 bond on January 1, 2020 with a coupon rate of 9%.  The present value…

A: Amortization Method: It is an accounting technique used to decrease the value of a loan or…

Q: Woodland Company issues bonds with a face value of $375,000 that pay 4% interest semiannually and…

A: First of all we will find the price of the bond with 4% market interest rate. We can find the price…

Q: Garcia Company issues 12.0%, 15-year bonds with a par value of $460,000 and semiannual interest…

A: A bond is a loan taken by a company on which a specific percentage of interest has to be paid over a…

Q: Debussy Ltd issues 3,000 convertible bonds at the start of 2020. The bonds have a four-year term and…

A: Bond is a type of debt which is used to raise the fund for the firm by the large organisation. Bonds…

Q: White side Corp issues $500,000 of 9% bond due in 10 years, with interest payable semiannually. At…

A: Calculate the present value of face value of bonds.

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

A: Cash proceeds from the issuance of bonds = Par value of bonds x Issue price %

Q: The Lo Sun Corporation offers a 5.3 percent bond with a current market price of $858.50. The yield…

A: Given:

Q: McAllen Corporation is issuing a $20,000,000 20-year bond with a stated interest rate of 10%. This…

A: Bond   A bond is basically an interest-bearing loan instrument that is issued by the companies in…

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…

Q: 1-Gonzalez electric company has outstanding a 10 percent bond issue with a face value of 1000 per…

A: Given information : Gonzalez interest rate (Coupon) 10% Face value of bond 1000 Time period…

Q: Tuck Co. plans on issuing three-year, 12% term bonds with face amount of P2,000,000. If the current…

A: It is pertinent to note that initial carrying value or the issue price of the bond is the present…

Q: Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10 percent annual interest.…

A: Using excel PV function

Q: A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at…

A: Bond valuation is done using the concept of present value. Bond valuation is done by discounting all…

Q: Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10 percent annual interest.…

A: Working note:

Q: ABCorporation issues 20-year, $1,000,000 bonds that pay semiannual interest of $40,000. If the…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fix amount of…

Q: 1,000 par value bonds pay14 percent interest annually. The market price of the bonds is $950 and the…

A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

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…

Q: earson Co issue its $140,000 at a price of 94, the stated rate is 6%, the bond term is 4 years, and…

A: Solution: Annual interest payment = Face value of bond * stated rate of interest  = 140000 *6%  =…

Q: Bushman, Inc., issues $200,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Future value is the value of an invested cash on a particular date which is equivalent to the value…

Q: O Corp issues 5%, 20-year bonds with a total face amount of $1,000,000. The market interest rate for…

A: The issue price of bonds will be present value of maturity amount and present value of interest at…

Q: A company issues GHS10 million of 6% bonds at a price of GHS100.50 for each GHS100 nominal value…

A: Bond: When the company needs money, the company issues fixed-income security that the investor buys.…

Q: Power Solutions Ltd. issues a $14,000,000, five-year, 4.5% bond with semi-annual interest payments.…

A: Bond is a long-term debt instrument that is used by organizations to raise debt funds from public.…

Q: The ELdian Republic issued 100,000 T-bill that can be bought for 98. This T-bill will mature 90…

A: Par value of T-Bill = 100,000 Issue price = 100,000*98/100 = 98,000 Period = 90 Days

Q: Company I issues a $40,000,000 bond on January 1, 2020 with a coupon rate of 7%.  The present value…

A: Req (a) The proceeds received from bonds is less than face value. Therefore bond issued at a…

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: On January 1, 2020, MMM Inc. issues $100,000 face value, 8% semiannual coupon bonds maturing in 10…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = $100,000 x 8% x 6/12 =…

Q: Bringham Company issues bonds with a par value of $660,000 on their stated issue date. The bonds…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Garcia Company issues 10%, 15-year bonds with a par value of $280,000 and semiannual interest…

A: Given information Bond life = 15 years x 2 = 30 periods Par value = $280,000 Stated interest rate =…

Q: Power Solutions Ltd. issues a $15,000,000, five-year, 4.5% bond with semi-annual interest payments.…

A: Part  (1) Cash received by Power on issue of Bond : Bonds Issued at Par = $15,000,000 Upfront…

Q: value bonds pay14 percent interest annually. The market price of the bonds is $950 and the market's…

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: Company A issues a 20-year 4% p.a. semi-annual coupon bond, face value of $2,000. 5 years after…

A: Calculate the coupon amount by multiplying the face value of the bond which is $2,000 with the…

Q: On December 31, 2021, Extract Company issued a P40,000,000 5-year of P1 per value each at an issue…

A: As per IFRS9, financial liability refers to a liability under which there is an obligation to make…

Q: ABC Inc. plans to issue $500,000 face value bonds with a stated interest rate of 12% and market…

A: Semi annual interest payments = Face value * Stated interest rate / 2 = 500000*12%/2 = 30000…