Bonds frequently used by schools and municipalities that mature in instalments are calle revenue bonds. convertible bonds. callable bonds. serial bonds.
Q: In terms of public offerings of bonds, what is an indenture? A) a list of the duties of a trust…
A: Bond: It acts between any investor and a company like a loan.
Q: The cash interest payment a corporation makes to its bondholders is based on
A: Bonds: Bonds are defined as debt instruments which are usually issued by the company that borrows to…
Q: A bond is an interest-bearing negotiable certificate of long-term debt issued by a. a corporation.…
A: A bond is an interest-bearing negotiable certificate of long-term debt issued by municipality and…
Q: Why do we need to issue municipal bonds? explain
A: Municipal bonds are bonds issued by the government to finance projects that will provide benefit to…
Q: Bonds for which the owners' names are not registered with the ISSUING corporation are called Select…
A: Bearer Bond: A bearer bond is a fixed-income asset in which the holder, or bearer, owns the security…
Q: 1.Revenue bonds are backed by the full taxing power (i.e., revenues) of the issuing municipality. А.…
A: Revenue bonds are also called as municipal revenue bonds.
Q: The bonds in which the name of the owners is not registered with the Corporation that issues them…
A: Bonds can be of different types
Q: _____________________________ are issued certificates, where big corporations or governments act as…
A: Bonds are the instruments that represents a loan given by an investor to borrower in exchange of…
Q: Bond issuance costs must be reported separately as deferred charges and charged to expense over the…
A: The costs associated with issuing the bonds are known as bond issue costs. Example - Legal fees,…
Q: Municipal
A: Bonds are defined as fixed income instruments are loans made by the investors to the borrowers.…
Q: Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately…
A: solution Bond issue costs, such as printing fees, legal fees, commissions, etc. are most…
Q: Capital outlays financed from general obligation bond proceeds should be accounted for through a:…
A: There are two types and forms of expenses that are being incurred by the business. One is capital…
Q: Standsard revenue bonds are: A. Backed by the full taxing authority of the municipality. B.…
A: The correct answer is option (b).The revenue bond is defined as a use of proceed revenue bond which…
Q: Which of the following is a promissory note, a written promise today, issued by a large,…
A: Eurodollars are certificate of deposits from outside the US bank for dollar deposit. Certificate of…
Q: Write a detailed note on Corporate Bonds.
A: Bond is the debt instrument which is securitized as tradeable assets. It is kind of fixed income…
Q: Corporate bonds that can be exchanged for shares of the corporation’s common stock ifcertain…
A: Corporate bond: It can be defined as a debt security, usually issued by the public or private…
Q: Which of the following represent the bond issue procedures Select one: a. Board of directors and…
A: Bonds: It refers to a financial instrument used by issuer to borrow money from investors.
Q: Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately…
A: Bonds are a form of loan or debt which is being issued by the business, on which regular interest…
Q: ost of capital versus investor yields. Also, explain the municipal bond interest in term
A: We know that there are two parties of corporate bond, one is issuer party that is known a company…
Q: A corporate bond is a long-term debt instrument indicating that a corporation has borrowed a certain…
A: Long-term debt refers to debt obligations with a maturity of more than one year. Long-term debt is a…
Q: Which of the following represent the bond issue procedures Select one: O a. Board of directors and…
A: A bond is a debt which the issuer owes to the holder on which the interest has to be paid and repay…
Q: Series EE bonds are: OU.S, savings bonds that produce income that may be exempt from some taxes.…
A: The EE Bond Series (commonly referred to as the "Patriot Bond") is a U.S. government bond that can…
Q: The proceeds of a long-term bond issue were used by a county to acquire general fixed assets. The…
A: Long-term liabilities: These are the liabilities that has to paid after the normal operation period…
Q: What is municipal bond insurance?
A: Bonds are the financial instruments that are issued by the financial institutions to raise debt…
Q: 1) Which of the following statement(s) is (are) true regarding municipal bonds? 1.I) A municipal…
A: A municipal bond is a debt security issued by a state/municipality
Q: uestion: Are bonds considered liabilities? Why or why not?
A: Meaning of Bonds Bonds are fixed income debt instruments where the borrower borrows money by issue…
Q: :A dicount on bonds payable .Occurs when a corporation issues bonds with a stated rate more than the…
A: A discount on bonds payable is a contra liability account which represents unamortized discount on…
Q: Most bonds: Select the correct response: give bondholders a voice in the affairs of the corporation…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: Define trustee (for bond indenture)
A: Bond is a debt instrument through which a company raises funds through borrowing and pays a fixed…
Q: Which of the following statements about are true about municipal bonds? (Select all that apply: 3 of…
A: In USA municipal bonds are popularly known as 'munis'. They are issued by state government or by…
Q: Question 2 Talk in details about Municipal Bonds "Munis".
A: Municipal bonds are debt securities. These are issued by state and local governments. These…
Q: True (t) or False (f) _____ Debt investments are investments in government and corporation bonds
A: Debt investments are investments in a company or firm by borrowing amount through the way of…
Q: State the types of corporate bonds.
A: Bonds are basically corporate debt units that are issued and securitized as the tradeable assets by…
Q: Which one of the following can issue the corporate bond O a. Individuals O b. Central Government…
A: Corporate bonds are issued by companies in order to raise finance. The company is required to pay…
Q: The legal document that spells out the rights of the bond holders and terms of a corporate bond is…
A: Solution:- When a company issues bond, it signs an agreement between the company and the bond…
Q: Describe corporate bonds and explain the taxadvantage of debt financing.
A: A corporate bond is a financial instrument issued by a corporation in order to raise funds for the…
Q: Define tax-exempt bonds
A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…
Q: What are municipal bonds, and how are these bonds taxed?
A: A bond is an instrument that represents the loan that is made by the investor to the company and…
Q: escribe the types of investors who would select municipal bonds and why they would do so
A: A municipal bond is a financial security issued by a state, municipality, or county to fund capital…
Q: Bonds are issued at a premium by a capital projects fund. The premium should bea. retained in the…
A:
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- Hello! I need help with the following accounting problem where we have to prepare the journal entries assuming the gonds were issued at 104. And then, computing the total cost of borrowing these bonds assuming they were issued at 103. All based on the info attatched below. Thank you.When issued, most convertible bonds are issued Multiple Choice O O deep out of the money deep in the money slightly in the money slightly out of the money Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.BOND VALUATION Lee Teng and Hu Feng are vice presidents of Oriental Asset Management and codirectors of the company’s pension fun management division. A major new client, the Shandong Network of Cities, has requested that Oriental Asset Management present an investment seminar to the mayors of the represented cities. Lee and Hu, who will make the presentation, have asked you to help them by answering the following questions. What are the bond’s key features? What are call provisions or sinking fund provisions? Do these provisions make bonds more or less risky? How is the value of any asset whose value is based on expected future cash flows determined? How is a bond’s value determined? What is the value of a 10-years, $1,000 par value bond with a 10% annual coupon if its required return is 10%? What is the value of a 13% coupon bond that is otherwise identical to the bond described in Question 4? Would we now have a discount or a premium bond? What is the value of 7% coupon bond with…
- (a) Describe the details of the bonds issued. (b) Assume that you are the accountant of one of the investors of the bonds. The investor purchased P10, 000,000.00 of RTB in February. Prepare journal entries for the purchase of the RTBs, accrual of interest and when the bonds are redeemed. (c) Why do you think the Government issues bonds? (d) Do you think issuing bonds by the government is effective and does it achieve its purpose? (e) Aside from issuing bonds, what do you suggests as other means of funding or can government source funds other than bonds?The following information pertains to BARU NUTS Company's issuance of bonds on July 1, 2021: WHAT SHOULD BE THE ISSUE PRICE OF THE BONDS? (Solution must be in good accounting form. Excel format would be good for a good accounting form! Thanks a lot, Tutor! I hope you can help me)If an amount box does not require an entry, leave it blank. a. Prepare the journal entry to issue $500,000 bonds that sold for $490,000. fill in the blank 2066ba04bff9fd9_2 fill in the blank 2066ba04bff9fd9_3 fill in the blank 2066ba04bff9fd9_5 fill in the blank 2066ba04bff9fd9_6 fill in the blank 2066ba04bff9fd9_8 fill in the blank 2066ba04bff9fd9_9 b. Prepare the journal entry to issue $500,000 bonds that sold for $515,000. fill in the blank a4c939fc9076fdb_2 fill in the blank a4c939fc9076fdb_3 fill in the blank a4c939fc9076fdb_5 fill in the blank a4c939fc9076fdb_6
- Hello! I need help with the following accounting problem where we have to compute the total cost of borrowing for the bonds based on the info attatched. Thank you!A debenture is ________. Group of answer choices A. a bond with assets such as land to back their word that they will pay it back B. the interest paid on a bond C. a type of bond that can be sold back to the issuing company whenever the bondholder wishes D. a bond with only the company's word that they will pay it backThe first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual interest of $21,000 ($700,000 × 6% × ½ year), receiving cash of $700,000. Question Content Area a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. Cash Cash Bonds Payable Bonds Payable Feedback Area Feedback Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. Question Content Area b. Journalize the entry to record the first interest payment. If an amount box does not require an entry, leave it blank. Interest Expense Interest Expense Cash Cash Feedback Area Feedback The interest payment is calculated using the following formula: Principle x Interest Rate x Time. Question Content Area c. Journalize the entry to record the payment of…
- Journalize the entries to record the following selected bond investment transactions for Dip, Inc. You MUST use the accounts outlined in the Chapter 15 narrated PowerPoint presentations – the accounts in your textbook aren’t descriptive enough. Journal entry descriptions are not required. *(Must include all supporting calculations) Date Transaction Description 4/1/2022 Purchased for cash, $50,000 of Bump, Inc. 9% bonds at 100 plus accrued interest. The bonds pay interest on January 31st and July 31st. 7/31/2022 Received the semiannual interest payment. 10/31/2022 Sold $20,000 of bonds at 104 plus accrued interest. 12/31/2022 Accrued interest. 12/31/2022 Marked the debt investments to a market value of $34,000. The debt investments are classified as available for sale investments. 12/31/2023 Market the debt investments to a market value of $31,000. The debt investments are classified as available for sale investments.(A) a Bank-backed municipal bond has yield of 10% with maturity of 18 years. Calculate its Yield ratio with this given table Name Maturity Yield Insured Municipal Bond 10 Years 7% Government Sukuk 12 years 6% Government Bond Series-19 15 Years 7% Government Bond Series-20 18 years 8% Government Bond Series-21 20 Years 9% (B) If the municipal government issues another bond with tax-backed scheme, what is the different of this tax-backed and bank-backed bond? (A) Suppose that the price of Malaysia T-Bills with 90 days to maturity and a $1 million face value is $960,000. What is the yield on a bank discount basis? (B) If the Cambodia treasury bill has 15% yield with 90 days to maturity, which T-Bill has better risk-reward? Why? (C) If the Vietnam T-Bill has 10% yield with 30 days to maturity, which T-Bill has better risk-reward? Why?Can you pleas provide clear answers for B, convexity and duration.Thank you for your time. Question 3. Bond Consider a bank with the following balance sheet (M means million): Assets Value Duration of the Asset Convexity of the Asset5yr bond bought at a yield of 3.4% (lending money) $550M 4.56212.02612yr bond bought at a yield of 4% (lending money) $800M 9.45353.565 Liabilities Value Duration of the Liability Convexity of the Liability2yr bond sold at a yield of 2.4% (borrowing money) $300M 1.941 2.3844yr bond sold at a yield of 2.8% (borrowing money) $500M 3.759 8.206 a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) b) Calculate the duration and convexity of the both asset and liability sides;