On January 1, Ruiz Company issued bonds as follows: Face Amount: Number of Years: Stated Interest Rate: Interest payments per year a) $500,000 Required: 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the bottom of this worksheet). Note: Rounding is not required. b) 15 7% 2 Annual Market Rate Semiannual Interest Payment: PV of Face Amount: +PV of Interest Payments: = Bond Selling Price: Annual Market Rate Semiannual Interest Payment: PV of Face Amount: + PV of Interest Payments: = Bond Selling Price: 9% $30 6.00% $30 2. Use the answer either "Premium" or "Discount" to the following items. The bond in (a) sold at a: The bond in (b) sold at a:
On January 1, Ruiz Company issued bonds as follows: Face Amount: Number of Years: Stated Interest Rate: Interest payments per year a) $500,000 Required: 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the bottom of this worksheet). Note: Rounding is not required. b) 15 7% 2 Annual Market Rate Semiannual Interest Payment: PV of Face Amount: +PV of Interest Payments: = Bond Selling Price: Annual Market Rate Semiannual Interest Payment: PV of Face Amount: + PV of Interest Payments: = Bond Selling Price: 9% $30 6.00% $30 2. Use the answer either "Premium" or "Discount" to the following items. The bond in (a) sold at a: The bond in (b) sold at a:
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...
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