If a company issues $100,000 Face Value, 10 year bonds with a contractural  interest rate of 6%, which of the following situations could occur? a. Bonds will be sold at a premium when the market rate of interest is 7% b. Bonds will be sold at a discount when market rate is of interest 7% c. Bonds will be sold at face value when market rate of interest is 7% d. The issue of bonds cannot be sold when market rate is 7%

Q: When the market rate of interest was 12%, Halprin Corporation issued $701,000, 11%, 10-year bonds…

A: One of the source used by the business organization in order to raise the funds is issue of bonds.…

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

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: West Corp. issued 15-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: he selling price of this bond issue was?

A:

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

A:

Q: Kiss Greetings planned to raise $500,000 by issuing bonds. The bond certificates were printed…

A: In the given case,The bond certificates were printed bearing a stated interest rate of 6%, which was…

Q: The Mills Company had issued a bond 10%, 10 year bonds with a face value of P1,000 each and paying a…

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

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

A:

Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

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

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

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 ten-year bond issue of $400,000, interest rate of 9% paid semiannually, is sold for $440,000 when…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On July 1, Somers Inc. issued $300,000 of 10%, 10-year bonds when the market rate was 12%. The bonds…

A: Issue price of bonds refers to the price at which the bonds are actually issued.

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: Marshall Enterprises issued $800,000 of 5-year, zero-coupon notes on January 1 when the market yield…

A: A zero-coupon bond, often described as an accrual bond, seems to be financial security that would…

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: Barrett Enterprises issues bonds with a face value of $900,000 on their issue date.  The bonds…

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

Q: Pearson Co issue its $154,000 at a price of 97, the stated rate is 6%, the bond term is 4 years, and…

A: Face Value of Bonds = $154000 Issue Value of Bonds = $154000 * 97% Issue Value of Bonds = $149380…

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 coupon bond is a bond that pays fixed interest payments in return to the bondholders till the…

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

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

Q: Eveready Company issued P100,000 of 8% term bonds on January 1, 2X19, due on January 1, 2X24, with…

A: Bond: A bond is a debt security. It is issued to  raise money from investors who is willing to  lend…

Q: Krystian Inc. issued 8-year bonds with a face value of $100,000 and a stated rate of 5% when the…

A: Answer A) Calculation of Total Amount to be received over the Bond Period Total Amount to be…

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: 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: Beluga Inc. issued 10-year bonds with a face value of $150,000 and a stated rate of 3% when the…

A: Bonds are issued by the company to raise an amount of money for financing projects of the company…

Q: Pearson Co issue its $193,400 at a price of 103, the stated rate is 9%, the bond term is 4 years,…

A: Solution: Annual interest payment on bond = Face value of bond * Annual stated interest rate

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: Newport Industries issued ten-year, $100,000 bonds paying semi-annual interest. When the annual…

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

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the…

A: Bonds are fixed-income securities issued by a corporate organization to borrow funds from other…

Q: Please provide entries on reclassification date under the following scenarios changes in business…

A: Bonds: Bonds are defined as the instrument used to raise the finance from the debt source and in…

Q: On April 1, 20-1, Rebound Co. issued $300,000 of 10%, 10-year bonds, callable at 105 after three…

A: 1.

Q: When the market rate of interest was 12%, Halprin Corporation issued $545,000, 11%, 10-year bonds…

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

Q: Enviro Company issues 12.50%, 10-year bonds with a par value of $470,000 and semiannual interest…

A: Cash proceeds from the issue of bond = Par value x Selling price, Semi-annual interest expense =…

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: Basil Corporation issues for cash $1,000,000 of 8%, 10-year bonds, interest payable annually, at a…

A: Bond premium: Bond premium is the amount by which the selling price (or issue price or market price)…

Q: On January 1, the Ryan Company issued $400,000 of 6%, 6-year bonds when the market rate of interest…

A: The cash collected from the issue of bonds is referred to as bond proceeds.

Q: ABC Corp. issued 8-year bonds a year ago. The bonds make semiannual payments. The YTM (yield to…

A: Face value of bond :— It is the price that is paid to the investor when the term of bond expires or…

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

A: In the given question we need to compute the current selling price of bond i.e. we need to compute…

Q: Assume that Beach Inc. has an issue of 20-year $1,000 par value bonds that pay 7% interest,…

A: The value of the bond is the current price of the bond. It is the present value of the cash flows…

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: When the market rate of interest was 12%, Halprin Corporation issued $317,000, 11%, 10-year bonds…

A: Present Value Paid at Maturity = Face Value * Pv factor at year 10 @ 12%   = $ 317,000 * 0.38554 = $…

Q: When the market rate of interest was 12%, Halprin Corporation issued $346,000, 11%, four-year bonds…

A: Answer) Calculation of Selling Price of Bonds Face Value of Bonds = $ 346,000 Annual rate of…

Q: Crane Company is about to issue $390,000 of 6-year bonds paying an 12% interest rate, with interest…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…