1 Role Of Accounting In Society 2 Introduction To Financial Statements 3 Analyzing And Recording Transactions 4 The Adjustment Process 5 Completing The Accounting Cycle 6 Merchandising Transactions 7 Accounting Information Systems 8 Fraud, Internal Controls, And Cash 9 Accounting For Receivables 10 Inventory 11 Long-term Assets 12 Current Liabilities 13 Long-term Liabilities 14 Corporation Accounting 15 Partnership Accounting 16 Statement Of Cash Flows Chapter13: Long-term Liabilities
Chapter Questions Section: Chapter Questions
Problem 1MC: An amortization table ________. A. breaks each payment into the amount that goes toward interest and... Problem 2MC: A debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to... Problem 3MC: The principal of a bond is ________. A. the person who sold the bond for the company B. the person... Problem 4MC: A convertible bond can be converted into ________. A. preferred stock B. common stock and then... Problem 5MC: On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000... Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest... Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest... Problem 8MC: On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is... Problem 9MC: On April 1 a company sells a 5-year, $60,000 bond with a 7% stated interest rate. The market... Problem 10MC: The effective-interest method of bond amortization finds the difference between the ________ times... Problem 11MC: When a bond sells at a discount, the carrying value ________ after each amortization entry. A.... Problem 12MC: The International Financial Reporting Standards require the use of ________. A. any method of... Problem 13MC: The cash interest payment a corporation makes to its bondholders is based on ________. A. the market... Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the... Problem 15MC: Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018,... Problem 16MC: Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal... Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal... Problem 18MC: OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000.... Problem 19MC: Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for... Problem 20MC: The difference between equity financing and debt financing is that A. equity financing involves... Problem 1Q: What is the difference between callable and putable bonds? Problem 2Q: What is the difference between serial bonds and term bonds? Problem 3Q: What is a junk bond? Problem 4Q: How are savings bonds different from a corporate bond? Problem 5Q: What do you have to do to the interest rate and years of maturity if a bond pricing problem tells... Problem 6Q: An amortization table/schedule is created to compute the amount to be amortized each year. What are... Problem 7Q: In the amortization table, how is the amortization of discount of premium computed? Problem 8Q: Does issuing a bond at a discount increase or decrease interest expense over the life of the bond? Problem 9Q: What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds... Problem 10Q: Why is the effective-interest method of amortization required under the International Financial... Problem 11Q: If there is neither a premium nor discount present, the journal entry to record bond interest... Problem 12Q: When do you use the Bond Discount Account? Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market... Problem 14Q: A company issued $100,000, 5-year bonds, receiving $97,000. What is the balance sheet presentation... Problem 15Q: Does interest expense increase or decrease when a bond premium is amortized? Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest... Problem 2EA: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the... Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the... Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated... Problem 5EA: Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The... Problem 6EA: Oak Branch Inc. issued $700,000 of 5%, 10-year bonds when the market rate was 4%. They received... Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The... Problem 8EA: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay... Problem 9EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The... Problem 10EA: Pinetop Corporation issued $150,000 10-year bonds at par. The bonds have a stated rate of 6% and pay... Problem 11EA: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay... Problem 1EB: Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the... Problem 2EB: Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the... Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual... Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market... Problem 5EB: Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%.... Problem 6EB: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are... Problem 7EB: Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received... Problem 8EB: Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received... Problem 9EB: Roo Incorporated issued 50 bonds with a face value of $1,000 and a stated rate of 6% when the market... Problem 10EB: Piedmont Corporation issued $200,000 of 10-year bonds at par. The bonds have a stated rate of 6% and... Problem 11EB: Lunar Corporation issued $80,000 in bonds for $87,000 on Jan. 1. The bonds had a stated rate of 8%... Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%... Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The... Problem 3PA: Eli Inc. issued $100,000 of 8% annual, 5-year bonds for $103,000. What is the total amount of... Problem 4PA: Evie Inc. issued 50 bonds with a $1,000 face value, a five-year life, and a stated annual coupon of... Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July... Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,... Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at... Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity... Problem 3PB: Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What... Problem 4PB: Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total... Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,... Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,... Problem 2TP: Below is select information from two, independent companies. Additional information includes: On... Problem 3TP: Assume you are a newly-hired accountant for a local manufacturing firm. You have enjoyed working for... Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...
bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price ?
Assume annual compounding. Round your answer to two decimal places. Do not include the dollar sign or negative sign (if applicable).
Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.
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