Wildhorse Corporation issues $560,000 of 9% bonds, due in 9 years, with interest payable semiannually. At...

Wildhorse Corporation issues $560,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds

Expert Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.


Face Amount		$ 560,000
Interest Payment	5600009%1/2	$ 25,200
Market Rate per period	10/2	5.0%
Period	9*2	18
Issue Price		$ 527,269
		=-PV(C5,C6,C4,C3)
OR
Present value of principal repayment	25200*11.68959	$ 294,578
Present value of interest payments	560000*0.41552	$ 232,692
Issue Price		$ 527,270

ekkarill92 answered 2 years ago

Coronado Corporation issues $410,000 of 9% bonds, due in 9 years, with interest payable semiannually. At...

Coronado Corporation issues $410,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds

1-Novak Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable semiannually. At...

1-Novak Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. Issue price of the bonds $ 2-The Sheffield Company issued $320,000 of 8% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Sheffield’s journal entries...

A company issues $680,000 of 5% bonds, due in 10 years, with interest payable semiannually on...

A company issues $680,000 of 5% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 1. The market interest rate is 5% and the bonds issue at face amount. 2. The market interest rate is 4% and the bonds issue at a premium 3. The market interest rate is 6% and the bonds issue...

whispering corporation issues 590000 of 9% bonds due in 10 years, with interest payable semi annually....

whispering corporation issues 590000 of 9% bonds due in 10 years, with interest payable semi annually. at the time of issue, the market rate fir such bonds is 10%. compute the price of the bond?

Christmas Anytime issues $810,000 of 7% bonds, due in 20 years, with interest payable semiannually on...

Christmas Anytime issues $810,000 of 7% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: Required: 1. The market interest rate is 7% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round...

Christmas Anytime issues $650,000 of 5% bonds, due in 10 years, with interest payable semiannually on...

Christmas Anytime issues $650,000 of 5% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 5. Required information Required: 1. The market interest rate is 5% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do...

Christmas Anytime issues $800,000 of 7% bonds, due in 15 years, with interest payable semiannually on...

Christmas Anytime issues $800,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 1. The market interest rate is 7% and the bonds issue at face amount 2. The market interest rate is 8% and the bonds issue at a discount. 3.. The market interest rate is 6% and the bonds issue...

Coney Island Entertainment issues $1,300,000 of 7% bonds, due in15 years, with interest payable semiannually...

Coney Island Entertainment issues $1,300,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:The market interest rate is 8% and the bonds issue at a discount.

Coney Island Entertainment issues $1,600,000 of 6% bonds, due in 15 years, with interest payable semiannually...

Coney Island Entertainment issues $1,600,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 2. The market interest rate is 7% and the bonds issue at a discount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest...

Coney Island Entertainment issues $1,500,000 of 5% bonds, due in 10 years, with interest payable semiannually...

Coney Island Entertainment issues $1,500,000 of 5% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: Required: 1. The market interest rate is 5% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round...

Question