Question Z Megan's Automotive Repair has 24,600 bonds outstanding, . The bonds pay a 9.80 percent semiannual coupon, mature in 12 years, and currently sell at 97 percent of par. Calculate the company's required return on debt.
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Question Z
Megan's Automotive Repair has 24,600 bonds outstanding, . The bonds pay a 9.80 percent semiannual coupon, mature in 12 years, and currently sell at 97 percent of par. Calculate the company's required return on debt.
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- Assume that Bunch Inc. has an issue of 18 -year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest $1. Select one:$1,201.32$1,233.79$1,032.56$1,134.88Computing Bond Issue Price Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that th bonds' market rate is: a. 8% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ 114,097 Present value of interest payments $ Selling price of bonds LA LA Check $ b. 10% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ Present value of interest payments $ Selling price of bonds $ LA 0 0 hCurrent Attempt in Progress Coronado Industries is about to issue $288,000 of 10-year bonds paying an 9% interest rate, with interest payable annually. The discount rate for such securities is 10%. Click here to view the factor table 1. Table 2 Table 3 Table 4 How much can Coronado expect to receive from the sale of these bonds? (For calculation purposes, use 5 decimal places as displayed in th factor table provided, e.g. 5.25471. Round answer to O decimal places, e.g. 2,525.)
- Financial Statement Impact On July 1, 2014 Botwin Company issues $1,000,000, 10%, bonds payable due in 10 years. Click here and use the slider to select the relevant interest rate to answer the following questions. 2.a. If the market rate of interest is 14%, what is the selling price of the bonds payable? b. If the market rate of interest is 14%, what is the discount on the bonds payable? c. If the market rate of interest is 14%, what is the carrying amount of the bonds payable on the date of issuance?Amalgamated Industries 5.4% bonds pat interest annually. The bonds sell for $990 and have a par value of $1,000. If these bonds mature in 30 years, what is their yield to maturity? 5.14% 5.30% 6.02% 5.47% 5.85%Financial Statement Impact On July 1, 2014 Botwin Company issues $1,000,000, 10%, bonds payable due in 10 years. Click here and use the slider to select the relevant interest rate to answer the following questions. 1.a. If the market rate of interest is 12%, what is the issue price of the bonds payable? b. If the market rate of interest is 12%, what is the discount on the bonds payable? c. If the market rate of interest is 12%, what is the carrying amount of the bonds payable on the date of issuance?
- Cost of debt with fees Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.6% with semiannual payments, and will use an investment bank that charges $20 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices? a. $959.56 b. $992.39 c. $1,060.96 d. $1,144.77 ACCES a. What is the cost of debt for Kenny Enterprises at a market price of $959.56? % (Round to two decimal places.)Atom Endeavour Co. issued $48 million face amount of 12.0% bonds when market interest rates were 13.38% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Annual interest payment b. Were the bonds issued at a premium or discount? O Premium O Discount c. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? O Interest expense will be less than the interest paid. O Interest expense will be more than the interest paid. O Interest expense will be equal to the interest paid.Bond interest payments before and after taxes Charter Corp. has issued 2,985 debentures with a total principal value of $2,985,000. The bonds have a coupon interest rate of 5%. a. What dollar amount of interest per bond can an investor expect to receive each year from Charter? b. What is Charter's total interest expense per year associated with this bond issue? c. Assuming that Charter is in a 25% corporate tax bracket, what is the company's net after-tax interest cost associated with this bond issue?
- Cost of debt with fees Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10 4% with semiannual payments, and will use an investment bank that charges $20 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices? a. $980.40 b. $994 65 c. $1,066 78 d. $1,176 66Cost of debt with fees. Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.8% with semiannual payments, and will use an investment bank that charges $30 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices? a. $931.44 b. $1,013.16 c. $1,102.27 d. $1,152.27 ..... a. What is the cost of debt for Kenny Enterprises at a market price of $931.44? |% (Round to two decimal places.)A company has issued a $20,000, 10 year bond. Each bond pays interest quarterly of 2%. Determine the amount a purchaser has to pay for the bond, if it yield a 12% compounded quarterly. a. PW = $32,000 b. PW = $31, 902 OC. PW = $15,378 d. PW = $28,000
