Bringham Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds’ issuance.
Q: When the market rate of interest was 12%, Halprin Corporation issued $701,000, 11%, 10-year bonds…
A: One of the source used by the business organization in order to raise the funds is issue of bonds.…
Q: Wildhorse Co. is about to issue $329,900 of 6-year bonds paying an 11% interest rate, with interest…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate…
Q: nviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: Cullumber Railroad Co. is about to issue $296,000 of 6-year bonds paying an 11% interest rate, with…
A: The amount that will be received from the sale of these bonds will be equal to the present value of…
Q: he selling price of this bond issue was?
A:
Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A:
Q: Clancey Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The…
A:
Q: Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.6 percent. The bonds make…
A: Calculate the yield to maturity (YTM) as follows:MS - Excel --> Formulas --> Financials -->…
Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: O'Shea Inc. Issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000.…
A: Amortization of Bonds discount or premium: The Bonds can be issued at a discount or premium. The…
Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…
A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…
Q: Paul Dirac & Associates begin operations on 1/1/X1 by issuing a 3.00 year term (Bullet) bond with a…
A: Paul Dirac & Associates begin operations on 01.01.X1 Issued bonds payable = $2600000 Bonds pays…
Q: When the market rate of interest was 12%, Halprin Corporation issued $1,000,000, 11%, 10-year bonds…
A: Option c is the correct option.
Q: The four different bond ratings below have a yeild to maturity for 10 year bonds. Baa 9.40% Ba1…
A: The bonds of Parrot Corp. were rated as Baa and issued at par a few weeks ago. The yiled…
Q: Paul Dirac & Associates begin operations on 1/1/X1 by issuing a 3.00 year term (Bullet) bond with a…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A: Given: Company’s issues = 8% Life of bond = 10 years Par value = $ 250,000 Annual market rate = 5 %…
Q: When the market rate of interest was 12%, Halprin Corporation issued $678,000, 11%, four-year bonds…
A: Selling price of bond issue = Present value of redemption value + Present value of interest…
Q: Los Altos, Inc., sold $100,000 face value, 6.0% coupon rate, 4 year bonds, for an aggregate issue…
A: Formula: Interest amount = Face value of bond x interest rate. Multiplying face value of bond with…
Q: Beluga Inc. issued 10-year bonds with a face value of $130,000 and a stated rate of 3% when the…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Dufner Co. issued 17-year bonds one year ago at a coupon rate of 7.8 percent. The bonds make…
A: Cash Flow at the time of maturity = $1000 Interest (Annuity) semiannually = ($1000 * 7.8%)*6/12 =…
Q: When the market rate of interest was 12%, Halprin Corporation issued $397,000, 11%, four-year bonds…
A: Bonds are a form of loan or debt issued by the company, on which company has to make regular…
Q: Barrett Enterprises issues bonds with a face value of $900,000 on their issue date. The bonds…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A: Premium on bonds payable = Cash proceeds from issuance of bonds - Par value of bonds Semi annual…
Q: Splish Inc. issues $3,700,000 of 7% bonds due in 12 years with interest payable at year-end. The…
A: Current price of the bond is the present value of future payments to be received. Future payments…
Q: 1) Create an amortization table for the Bond. 2) What is the Price of the bond? What is the Value…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semi-annual…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…
Q: Krystian Inc. issued 8-year bonds with a face value of $100,000 and a stated rate of 5% when the…
A: Answer A) Calculation of Total Amount to be received over the Bond Period Total Amount to be…
Q: Amount received by Splish when bonds were issued
A: Computation of amount received by Splish on issue of bonds shall be shown below :
Q: On January 1, 2015, Michael Corp. issued 300 bonds with a face value of $1,000 each and a face rate…
A: Bond is form of long term debt. It have lower cost than other common stock. The market value of bond…
Q: Park Corporation is planning to issue bonds with a face value of $4,000,000 and a coupon rate of 7…
A: Given information Bond face value = $ 4,000,000 Coupon rate = 7% [ per period = 3.5% ] Market…
Q: The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into…
A: Given information is as follows: Face value of bond = $1000 Time period = 7 years Yield = 6%…
Q: Bushman, Inc., issues $200,000 of 9% bonds that pay interest semiannually and mature in 10 years.…
A: Future value is the value of an invested cash on a particular date which is equivalent to the value…
Q: Beluga Inc. issued 10-year bonds with a face value of $150,000 and a stated rate of 3% when the…
A: Bonds are issued by the company to raise an amount of money for financing projects of the company…
Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the…
A: Introduction:- Bonds are issued by the company to borrows money from its lenders. Which are issued…
Q: The semi-annual, twenty-year bonds of Bempa, Inc. are selling at par and have an effective annual…
A: The amount of each interest payment or the amount of each coupon payment can be found through the…
Q: O’Shea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for…
A: A bond is a fixed-income instrument that represents a loan from an investor to a borrower (typically…
Q: When the market rate of interest was 12%, Halprin Corporation issued $545,000, 11%, 10-year bonds…
A: Bonds will pay interest on face value of bonds Interest rate=11% Duration of bond is 10 years…
Q: Paul Dirac & Associates begin operations on 1/1/X1 by issuing a 3.00 year term (Bullet) bond with a…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Bringham Company issues bonds with a par value of $660,000 on their stated issue date. The bonds…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to…
A: AFTER TAX COST OF DEBT =RD×1-TAX
Q: Garcia Company issues 10%, 15-year bonds with a par value of $280,000 and semiannual interest…
A: Given information Bond life = 15 years x 2 = 30 periods Par value = $280,000 Stated interest rate =…
Q: When the market rate of interest was 12%, Halprin Corporation issued $395,000, 11%, four-year bonds…
A: A bond is a borrowing security issued by a company to raise funds from the market by making an…
Q: When the market rate of interest was 12%, Halprin Corporation issued $317,000, 11%, 10-year bonds…
A: Present Value Paid at Maturity = Face Value * Pv factor at year 10 @ 12% = $ 317,000 * 0.38554 = $…
Q: Muscat Co. has an issue of OMR1,000 par value bonds with a 9% stated interest rate outstanding. The…
A: Using excel PV function
Q: When the market rate of interest was 12%, Halprin Corporation issued $346,000, 11%, four-year bonds…
A: Answer) Calculation of Selling Price of Bonds Face Value of Bonds = $ 346,000 Annual rate of…
Q: Crane Company is about to issue $390,000 of 6-year bonds paying an 12% interest rate, with interest…
A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…
Q: Concord Inc. issues $ 2,300,000 of 7% bonds due in 12 years with interest payable at year-end. The…
A: Value of bond is the present value of the future coupon payments and the present value of the bond…
Q: Crane Company is about to issue $390,000 of 6-year bonds paying an 12% interest rate, with interest…
A: Sale proceeds from issue of bonds = Interest Payment x PVIAF (13%, 6 years) + Face value of the…
I dont understand this homwork
Bringham Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)
1. Compute the price of the bonds as of their issue date.
2. Prepare the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000. From this information, we know that the market rate of interest was ________. A. more than 6% B. less than 6% C. equal to 6% D. cannot be determined from the information given.Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for $103,000. From this information, we know that the market rate of interest was ________. A. more than 7% B. less than 7% C. equal to 7% D. equal to 1.3%Brin Company issues bonds with a par value of $700,000. The bonds mature in 6 years and pay 6% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount.) Table Values are Based on: n = i = Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds
- Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual Interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their Issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n= Table Value Amount Present Value $ 0 Required 1 Prepare the journal entry to record the bonds' issuance. Note: Round intermediate calculations to the nearest dollar amount. Required 2 View…Brin Company issues bonds with a par value of $540,000. The bonds mature in 6 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tebles provided.) 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount.) Table Values are Based on: Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds Required 2 >The Victoria Telephone Company has a $1,000 par value bond outstanding that pays 18 percent interest with annual payments. The current yield to maturity on such bonds in the market is 19 percent. Use Appendix B and Appendix D. Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. 25 Year b. 18 Year c. 1 Year Price of the bond $948.05 $ 949.67 $991.60 0 0 0
- Brin Company issues bonds with a par value of $540,000. The bonds mature in 6 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2. Table 8.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds Table Value Amount Present Value S Assessment Tool iFrameWhen the market rate of interest was 12%, Halprin Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was _____. Use the following tables, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197 Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 5 4.32948…When the market rate of interest was 12%, Halprin Corporation issued $678,000, 11%, four-year bonds that pay interest annually. The selling price of this bond issue was _____. Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197 Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 5 4.32948…
- a. Assume that the market interest rates were slightly higher than 9% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount? Explain. b. Independent of your answer to part a, assume that the proceeds were $14,820,000. Use the horizontal model (or write the journal entry) to show the effect of issuing the bonds. C. Calculate the interest expense that Coley Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2013, assuming that the discount of $180.000 is amortized on a straight-line basis.Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. Compute the price of the bonds as of their issue date. Prepare the journal entry to record the bonds' issuance.When the market rate of interest was 12%, Halprin Corporation issued $604,000, 11%, five-year bonds that pay interest annually. The selling price of this bond issue was _____. Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197 Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 5 4.32948…