The company has made an investment in government bonds. The bonds will generate an interest income of OMR 17457 each year for 6 years. The interest rate is 12% annually. Compute present value of the stream of interest income for 6 years.   اخترأحد الخيارات a. 4245.99 b. 89229.84 c. 54315.84 d. 71772.84 e. All the given choices in this question are not correc

Q: On January 1, 2021, Splash City issues $390,000 of 7% bonds, due in 10 years, with interest payable…

A: The amortization schedule is prepared to record the interest payment, interest expense and carrying…

Q: The city is issuing bonds for a building project . You obtain 7200 bond that pays 7% interest…

A: Interest Earned = Amount * rate of Interest * Time                          = 7200 * 7% * 7…

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5.…

A: Amount to be accumulated = P1000000 Number of deposits (n) = 4 r = 10% Let the annual deposit = A

Q: he company has made an investment in government bonds. The bonds will generate an interest income of…

A: The Present Value of Annuity (PVAF) is the cash value of all future annuity payments discounted at a…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A: Given: PMT =OMR 20878Interest rate (i)=12%No. of periods (n)=6 years

Q: Pharoah Company issued $1,100,000, 12-year bonds and agreed to make annual sinking fund deposits of…

A: A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company…

Q: Mi-T-M Corporation is a manufacturer of high quality industrial equipment including power washers…

A:

Q: Last month Jim purchased $10,000 of U.S. Treasury bonds (their face value was $10,000). These bonds…

A: The bond price is calculated by the concept of the time value of money. All the expected cash flows…

Q: 4. A man purchase government bonds at P750 each which mature in 10 years and have a face value of…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A:

Q: On March 15, year 1 ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5.…

A: Annual deposit = X Interest rate (i) = 10%

Q: A graphics design company issued bonds in the amount of $1,000,000 with a stated interest rate of…

A: Formula: Interest amount = Principal amount x Interest rate x Time period. Interest is a charge on…

Q: Five $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for $4,940 and…

A: Given information: Face value of bond is $1,000 Coupon rate is 8% Yield is 6% Number of years is 6

Q: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: Interest expense is the outlay incurred by an entity due to borrowing of notes or issue of bonds or…

Q: An Iowa state savings bond can be converted to $100 at maturity 22 years from purchase. If the state…

A: Calculation of bond price:The price at which the state can sell its bond is at $18.39.Excel spread…

Q: A $10,000 commercial bond that has a 6% bond rate and matures in 5 years can be purchased for…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: A municipal bond with a face value of $10,000 and bond interest rate of 8% per year payable…

A: Given,  The face value of the bond is $10,000 Interest rate 8% Yield is 12%

Q: McAllen Corporation is issuing a $20,000,000 20-year bond with a stated interest rate of 10%. This…

A: Bond   A bond is basically an interest-bearing loan instrument that is issued by the companies in…

Q: Gulf Company has made an investment in government bonds. The bonds will generate an interest income…

A: The present value of stream of interest can be calculated by using this equation Present value…

Q: Strikler inc. Has issued 10 million 10 year bond. The bond requires strikler to establish a sinking…

A: Sinking fund : A sinking fund is a fund containing money set aside or saved to pay off a debt or…

Q: On January 1, a company issues 8%, 5 year, $300,000 bonds that pay interest semiannually each June…

A: Companies often use bonds to raise money to expand its business, to conduct normal operations etc…

Q: At the beginning of the current year, Chacha Company purchased 5-year bonds with a face amount of…

A: As per the amortization method, the value of the financial instrument is recognized at present…

Q: Blossom Corporation is about to issue $ 1,260,000 of 10-year bonds that pay a 6% annual interest…

A:

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,00 by September 1, year 5.…

A: When an equal amount is paid every period at the beginning of each period, it is called as an…

Q: Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co.…

A:

Q: SMC will be issuing bonds with a face value of P100,000 through an underwriter. The underwriter will…

A: Expenses on Issue: Underwriting Commission = P100,000*7% = P7,000 Interest Expense = 8% =…

Q: An lowa state savings bond can be converted to $100 at maturity 9 years from purchase. If the state…

A: Given:Future value=$100Time period=9 yearsInterest rate=7% Compounded annuallyTo compute:Price at…

Q: On January 1, 2021, Frontier World issues $41 million of 9% bonds, due in 20 years, with interest…

A: Bond: It can be defined as the financial instrument that represents the borrowings made to the…

Q: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: This question deals with the calculation of interest expense that needs to record during the year…

Q: On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable…

A: Given: Amount issued = $ 500,000 Rate of bond = 9 % Market interest rate = 10 % Amount of bond…

Q: Extreme Motion issues $500,000 of 6% bonds due in 20 years with interest payable semiannually on…

A: Bond: It can be defined as a financial instrument of indebtedness that reflects a loan made by the…

Q: One hundred $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for…

A: The effective yield is the return on a bond that has its interest payments (or coupons) reinvested…

Q: Debond Corp. issues £1,000,000 face value of fi ve-year bonds, dated 1 January 2010,when the market…

A: A typical calculation often used to discount or amortize a bond, is identified as the effective…

Q: Boyd Co. produces and sells aviation equipment.  On the first day of its fiscal year, Boyd Co.…

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

Q: An Iowa state savings bond can be converted to $500 at maturity 11 years from purchase. If the state…

A: Maturity value of bond (F) = $ 500 Years to maturity (n) = 11 Interest rate (r) = 7%

Q: An Iowa state savings bond can be converted to $1000 at maturity 12 years from purchase. If the…

A: Maturity value = $ 1000 Years to maturity = 12 Years Annual interest rate = 2%

Q: Today Arrow Company issued bonds that will mature to a value of $120,000 in 20 years. Arrow's…

A: A fund that is created by a company to meet its obligation in the future such as repayment of…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A: Bond is a financial instrument which represents a loan made by an investor to a borrower. This…

Q: Prepare a schedule for the following bond, including calculations, yearly income, end-of-year…

A: Given:

Q: A 15-year municipal bond was issued 5 years ago. Its coupon interest rate is 4%, interest payments…

A: Bond value is the current worth of the bond on the basis of the present value of all the cash flows…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: Calculate the size of the periodic sinking fund deposits. b. Calculate the sinking fund balance at…

A: Information Provided: Bonds face value = $350,000 Years = 7 Interest rate = 5.50% compounded…

Q: 4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000.…

A: In this question we are require to calculate the interest expense need to record in year 2020 under…