For the given corporate bond, whose annual simple interest rate is provided, find the semiannual simple interest payment and the total interest earned over the life of the bond. Assume 365 days in a year. $11,200 Company A, 10-year bond, 4.542% The semiannual interest on the corporate bond is $. (Round to the nearest cent as needed.) www.
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- 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?For the given corporate bond, whose annual simple interest rate is provided, find the semiannual simple interest payment and the total interest earned over the life of the bond. Assume 365 days in a year. d$11,900 Company A, 10-year bond, 3.169% The semiannual interest on the corporate bond is $ (Round to the nearest cent as needed.)Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.
- 2. DEF Company will issue $8,000,000 in 10%, 10-year bonds when the market rate of interest is 7%. Interest is paid semiannually. Required: a. Will this interest structure result in a Premium for DEF company or a Discount? b. How much cash will be received from the issuance of the bond? c. How much will the semi-annual interest payment be on the bond?A corporation issues a bond with a par value of $9,000 in one year. Assume that the bond is sold today for $8,000. What is the interest rate received by the lender? 6.67% 12.50% 3.33% 16.67%Use the following to answer questions 8-10 (Round answers to the nearest dollar) The company issues 9%, 10-year bonds with a total face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 9%. Interest is paid semiannually. What is the issue price of the bond? When the company records the 2nd interest payment, how much will the company record for 8. $ 9. $ interest expense? 10. $ . What is the bond liability (carrying amount) after the 2nd interest payment?
- For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond. 1) $2000 Max-Mart Stores 5-year bond at 6.75%Bond Issuance. Sander Corporation issues a P300,000, 16 percent, 10-year bond at 108. REQUIREMENTS: (a) What is the maturity value? (b) What is the annual cash interest payment? (c) What are the proceeds the company receives upon issuance of the bond? (d) What is the amount of the premium? (e) What is the annual premium amortization?Two types of bonds are offered to you for bond investment considerations: P10,000, 5-year, 10% p.a. Debenture bond issued by Yoo Hoo corp. The interest payable twice a year. The bond has four years remaining term and is offered to you at 98-1/2. P5,000, 10-year, 10% p.a. Mortgage bond issued by Khoo Coo, Inc. Interest is paid annually. The bond still has 7 years remaining life before its maturity. It is offered to you by a friend at 101-3/4. It has been your policy that your desired rate of return for unsecured investment should be 12% p.a, and for secured investment will earn a minimum of 8% p.a. 1. Based on the above information, compute the exact yield to maturity (YTM) of the two bonds offered. 2. Which bond you wish to invest? Explain thoroughly why.
- Two types of bonds are offered to you for bond investment considerations: P10,000, 5-year, 10% p.a. Debenture bond issued by Yoo Hoo corp. The interest payable twice a year. The bond has four years remaining term and is offered to you at 98-1/2. P5,000, 10-year, 10% p.a. Mortgage bond issued by Khoo Coo, Inc. Interest is paid annually. The bond still has 7 years remaining life before its maturity. It is offered to you by a friend at 101-3/4. It has been your policy that your desired rate of return for unsecured investment should be 12% p.a, and for secured investment will earn a minimum of 8% p.a. Based on the above information, compute the value of the bond for the two types of bonds offered.Karson Compahy. issues 10-year bonds maturity, face value of $200,000 and 8% interest rate. If the bonds are issued at 180,000 how much do you expect the market interest rate: Select one: Oa. % 6 O b. % 8 o C. % 4 Od %10Use the following to answer questions 1 – 3 (Round answers to the nearest dollar) O Corp issues 5%, 20-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid annually. 1. $ How much will be paid in interest each interest payment? 2. $ (rounded to nearest dollar). What is the present value of the interest payments? 3. $4 What is the issue price of the bond?