What the answer for 4,5,64. It’s not -1,511,209.865. It’s not 44,580.696. It’s not 1,510,790 Use the following to answer questions 4 – 7 (Roundanswers to the nearest dollar)TR issues 6.0%, 10-year bonds with a total face amount of$1,500,000. The market interest rate for bonds of similarrisk and maturity is 5.9%. Interest is paid semi-annually.DO NOT ROUND YOUR ANSWERS UNTIL YOUFULLY COMPLETE THE PROBLEM SET (input youranswers after you've completed the entire problem).$the issue price of the bond?4.(rounded to nearest dollar). What is5. $(rounded to nearest dollar). When thecompany records the first interest payment, how muchrecordwillthecompanyforinterestexpense?6.$(rounded to nearest dollar). What isthe bond liability (carrying amount) after the first interestpayment?$company records the second interest payment, how much7.(rounded to nearest dollar). When thewillthecompanyrecordforinterestexpense?

Here, To Find: Part 4. Issue price of the bond =? Part 5. Interest expense at first payment =? Part…

TR issues 6.0%, 10-year bonds with a total face amount of $1,500,000. The market interest rate for bonds of similar risk and maturity is 5.9%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). 4. $ the issue price of the bond? (rounded to nearest dollar). What is 5. $ (rounded to nearest dollar). When the company records the first interest payment, how much will the company record for interest expense? $ the bond liability (carrying amount) after the first interest payment? 6. (rounded to nearest dollar). What is

TR issues 6.0%, 10-year bonds with a total face amount of $1,500,000. The market interest rate for bonds of similar risk and maturity is 5.9%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). 4. $ the issue price of the bond? (rounded to nearest dollar). What is 5. $ (rounded to nearest dollar). When the company records the first interest payment, how much will the company record for interest expense? $ the bond liability (carrying amount) after the first interest payment? 6. (rounded to nearest dollar). What is

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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Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?
On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
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Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 500 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,000 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Required Assuming the market rate of interest is 10%, calculate the selling price for each bond issue.
A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?
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The University Club recently issued 1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually. You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant cash flows needed for bond pricing.