JS Kieso, Intermediate Accounting, 17e Help | System Announcements CALCULATOR PRINTER VERSION 4 BACK NEXT Exercise 6-07 (Part Level Submission) What would you pay for a $175,000 debenture bond that matures in 15 years and pays $8,750 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) XYour answer is incorrect. Try again. 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay 23553 LINK TO TEXT dy. Attempts: 2 of 5 used SAVE FOR LATER SUBMIT ANSWER (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

JS Kieso, Intermediate Accounting, 17e Help | System Announcements CALCULATOR PRINTER VERSION 4 BACK NEXT Exercise 6-07 (Part Level Submission) What would you pay for a $175,000 debenture bond that matures in 15 years and pays $8,750 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) XYour answer is incorrect. Try again. 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay 23553 LINK TO TEXT dy. Attempts: 2 of 5 used SAVE FOR LATER SUBMIT ANSWER (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter3: The Financial Environment: Markets, Institutions And Investment Banking

Section: Chapter Questions

Problem 19PROB

See similar textbooks

Similar questions

On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________. A. $200,000 B. $558,438 C. $2,233,750 D. $6,701,250
ABC Co. is contemplating on investing on 12%, 3-year p1,000,000 bonds. Pricipal is due at maturity date but interest is due annually at each year-end. Market rate on January 1, 20x1 is 10%. Information regarding the fair values follows: December 31, 20x2….104 December 31, 20x3….105 Please provide entries on reclassification date under the ff scenarios:( changes in business model in 20x2) a. Amortised cost to FVPL b. PVPL to Amortised cost c. Amortised cost to FVOCI-mandatory Required : Prepare journal entries
Ma3. Dino Company purchased a bond with a face value of $100,000 with a stated interest rate of 6% that pays interest semi-annually on June 30 and December 31. The bond was purchased on January 1, 20X1 and matures in 5 years. It was purchased at 91.889 when interest rates in the market were 8%. Record journal entries that the company would record during 20X1 if the company accounts for this investment under the amortized cost model. Indicate the amounts that would appear on the year-end statement of financial position with regard to this investment. Assume that market interest rate fell to 2% by January 1, 20X3. On that date the bond investment was sold. Record the journal entry that would be made at that time.
P9-14 (similar to) Question Help (Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 22 years and pay 9 percent interest annually. If you purchase the bonds for $1,300, what is your yield to maturity? Your yield to maturity on the Abner bonds is what %. (Round to two decimal places.)
A company issues GHS 1,000,000 12% debentures of par value of GHS 100 each. The debentures are redeemable after the expiry period of 7 years. The company is in the 35% tax bracket.Required (i)Calculate the cost of debt after tax, if debentures are issued at: • Par • 10% Discount • 10% Premium (ii) Based on the relationship between coupon interest rate and cost of debt, explain why debenture may be issued at par, discount and premium.
ABC Co. is contemplating on investing on 12%, 3-year p1,000,000 bonds. Pricipal is due at maturity date but interest is due annually at each year-end. Market rate on January 1, 20x1 is 10%. Information regarding the fair values follows: December 31, 20x2 is 104, December 31, 20x3 is 105 Please provide entries on reclassification date under the following scenarios changes in business model in 20x2 a. Amortised cost to FVPL b. PVPL to Amortised cost c. Amortised cost to FVOCI-mandatory Requirement: Prepare jounal entries
Karan Subject-Accounting What would you pay for a $10,000, 5 year, 8% bond if you desired to yield 10%? Need help knowing how to solve! Answer: 9,241.83
P9-16 (similar to) Question Help (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 13 years until maturity. You can purchase the bond for $1,105. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 7 percent? a. The yield to maturity on the Saleemi bonds is nothing%. (Round to two decimal places.)
Tulip LLC issued 10.000, 9 % debentures of OMR 85 each on 1-4-2018 to be matured on 1-4-2024. The company wants to know the current cost of its existing debt and the market price of the debenture is OMR 75. The debenture is redeemed at discount rate of 5%Find the cost of existing debentures assuming 40 % tax rate. a)8.02% b)7.12% c)5.54% d)11.05%
Assuming Brokerage fees of $6000, calculate the amount ofcash needed to retire Baldwin's12.4S2031 bond early. Select: 1|Save Answer $5, 826, 767 $ 5, 474, 421 $5, 468, 421
https://www.bartleby.com/questions-and-answers/on-january-1-2019-canglon-inc.-issues-10percent-5year-bonds-with-a-face-value-of-dollar150000-when-t/6f595d41-e2c8-47bc-8a78-adff0af9b34f In step 2 of the above solution, where did the $45,000 come from? I can't figure out where it came from so the solution doesn't make any sense.
Gordon Corporation issued $700,000 par value 2% 5 year bonds on Jan 1 2019. The bonds mature on 12/31/23 and pay semi annual interest. The market rate on the date of issue is 4%. Gordon has elected to use the straight line method for discount amortization. What is the bond issue price for the Gordon bonds? A. $586,447 B. $637,122 C. $766,299 D. $700,000 The answer is B, how do you get that using Excel formulas rather than the tables?