On 1/1/01, The Silence, LLC has issued a $1M, 3%, 20-year Bond. The Market requires a...

On 1/1/01, The Silence, LLC has issued a $1M, 3%, 20-year Bond. The Market requires a 5% return for similar investments. Prepare the amortization schedule for The Silence. Prepare the Journal Entry for 1/1/01, 12/31/01, and 12/31/21.

Expert Solution

ekkarill92 answered 1 year ago

Brian &Co has invested in a 20 year Government bond with a Par value of $1m...

Brian &Co has invested in a 20 year Government bond with a Par value of $1m and a 12% coupon rate. It pays interest every quarter. The band has just made its 30th coupon payment. The market now requires a 10% return on the bond. The financial controller of Brian & Co requires your help to assist with her recommendations to senior management on what FNPF should do with the bond.

NYU issued a 20 year bond that pays a semi annual coupon of $32.00, has a...

NYU issued a 20 year bond that pays a semi annual coupon of $32.00, has a par value of 1000, and a nominal annual yield-to-maturity of 7.443 percent. This bomd can be called in 5 years, and the nominal annual yield to call is 10.15 percent. Determine the call premium for this bond.

Assuming Kristi corporation issued a 10%, $1M bond due in 5 years. The bond sold on...

Assuming Kristi corporation issued a 10%, $1M bond due in 5 years. The bond sold on January 1, 2018, to yield 8%. The company pays interest on June 30th and December 31st 1. Determine the issue price of the bond. 2. Record the necessary journal entries for 2018 assuming the company's fiscal year end is 12/31. 3. Record the necessary journal entries for 2018 assuming the company's fiscal year end is 10/31.

1. A bond issued by the town of Brockton has a 3% yield to maturity and...

1. A bond issued by the town of Brockton has a 3% yield to maturity and a coupon rate of 4%. The bond has 4 years to maturity and pays coupons semi-annually. What is the bond's current price? 2. A credit card has an annual rate of 18% with monthly compounding. What is the EAR? 3. A bond issued by UMass Boston currently sells for $1000. It has 10 years to maturity and a yield to maturity of 2%. The...

On January 1, Landan, Inc. issued a 20-year semiannual bond with a face value of $915,000...

On January 1, Landan, Inc. issued a 20-year semiannual bond with a face value of $915,000 paying 8%. On the date of issue, the market rate for similar bonds was 8%. Landan would like to know how much this issuance would raise. The following table is a SCRATCH table and will NOT be graded. You may use it, if you wish, to assist you. Provided you answer the other questions correctly, you could leave it blank and still receive full...

Consider a 1 year reverse convertible bond issued by sumsung. The coupon rate is 20% (only...

Consider a 1 year reverse convertible bond issued by sumsung. The coupon rate is 20% (only pay once a year) and face value is 100,000 USD . At the maturity date, the firm has the option to convert it to 1000 shares of sumsung stock. 1. Suppose at the maturity date, the sumsung stock price is 167 USD. What is debtholder’s payoff? 2. Explain why the reverse convertible bond promises high coupon rate 3. Should the coupon rate be higher/lower...

A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 9.5%...

A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 9.5% and face value $1,000. Find the imputed interest income in: (a) the first year; (b) the second year; and (c) the last year of the bond’s life. (Round your answers to 2 decimal places.)

On January 1, MOA, Inc. issued and sold a $200,000, 5.5%, 20-year bond payable, and received...

On January 1, MOA, Inc. issued and sold a $200,000, 5.5%, 20-year bond payable, and received proceeds of $250,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the premium. The journal entry to record the first interest payment is: Debit Bond Interest Expense $14,210; credit Cash $14,210. Debit Bond Interest Expense $11,000; credit Cash $11,000. Debit Bond Interest Expense $6,750; credit to Premium on Bonds Payable $1,250; credit Cash $5,500. Debit...

On 1 July 2017, Patience Ltd acquired all the issued shares of Silence Ltd for a...

On 1 July 2017, Patience Ltd acquired all the issued shares of Silence Ltd for a cash consideration of $1,000,000. At that date, the financial statements of Silence Ltd showed the following information. Share capital $650000 General reserve $20000 Retained earnings $ 250000 All the assets and liabilities of Silence Ltd were recorded at amounts equal to their fair values at the acquisition date, except some equipment recorded at $50,000 below its fair value with a related accumulated depreciation of...

On 01-01-15, J issued $6,000,000 of its 4%, 7-year term bonds dated 01-01-15. At the time the bonds were issued, similar bonds paid 4.5%.

On 01-01-15, J issued $6,000,000 of its 4%, 7-year term bonds dated 01-01-15. At the time the bonds were issued, similar bonds paid 4.5%. In conjunction with issuing the bonds, on 01-01-15, J incurred and paid $50,000 of issuance costs. The bonds pay interest every July 1 and January 1. J uses the effective-interest method to amortize any bond discount or premium. J prepares AJEs only as of every December 31. Prepare the entries J should make ona. 01-01-15b. 07-01-15c....

Question