You are watching: A bondholder that owns a $1,000, 10%, 10-year bond has
Is computed together the present value of all remaining future payments, discounted utilizing the market rate of attention at the time of issuance
A agency purchased equipment and signed a 7 year rate loan at 9% yearly interest. The annual payments same $9,000. The present value variable for one annuity for 7 years in ~ 9% is 5.0330. What worth for this equipment should be tape-recorded on the company"s publications on the work the contract is signed?
The buyer typically pays the issuer the purchase price plus any kind of interest accrued since the last attention payment date.
A company issues 9%, 20-year bonds with a par value of $750,000. The current market price is 9%. The amount of interest owed come the bondholders because that each semiannual interest payment is.
A agency issued 8%, 15-year bonds with a par value of $550,000. The existing market price is 8%. The journal entry to document each semiannual attention payment is:
Adidas issued 10-year, 8% bonds v a par value of $200,000, whereby interest is payment semiannually. The sector rate on the concern date to be 7.5%. Adidas got $206,948 in cash proceeds. I beg your pardon of the following statements is true?
A agency received cash proceeds the $206,948 ~ above a bond problem with a par worth of $200,000. The difference between par value and also issue price because that this bond is taped as a:
On January 1, 2013, Jacob concerns $600,000 that 11%, 15-year bonds in ~ a price that 102½. What is the journal entry to record the issuance of these bonds?
On January 1, 2013, Lane issues $700,000 the 7%, 15-year bonds in ~ a price that 106¾. The interest payments space made on June 30 and December 31. Lane elects a fiscal year ending September 30. What is the amount that would be recorded as cash payment in the December 31, 2013, journal entry?
Online Learning center to companion Essentials the Investments8th EditionAlan J. Marcus, Alex Kane, Zvi Bodie
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