Question
In: Accounting
A bond matures in 6 years, has a face value of $100,000, an effective interest rate...
A bond matures in 6 years, has a face value of $100,000, an effective interest rate of 4%, stated interest rate of 3% and semiannual interest payments. It sells for $94,712. Amortize the bond discount.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Company A issues a bond with a $100,000 face value. The bond matures in three years....
Company A issues a bond with a $100,000 face value. The bond
matures in three years. The stated interest rate is 9% and the
market interest rate is 12%. Interest payments are made every 6
months.
Record the journal entry for the issuance of the
bond.
A 7% semiannual coupon bond matures in 6 years. The bond has a face value of...
A 7% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 7.5649%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$______
What is the bond's YTM? (Hint: Refer to Footnote 6 for the
definition of the current yield and to Table 7.1) Do not round
intermediate calculations. Round your answers to two decimal
places.
______%
An 8% semiannual coupon bond matures in 6 years. The bond has a face value of...
An 8% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 8.4681%. What is the
bond's price? Do not round intermediate calculations. Round your
answer to the nearest cent. $ What is the bond's YTM? (Hint: Refer
to Footnote 7 for the definition of the current yield and to Table
7.1.) Do not round intermediate calculations. Round your answers to
two decimal places.
A 7% semiannual coupon bond matures in 6 years. The bond has a face value of...
A 7% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 7.5864%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 7 for the
definition of the current yield and to Table 7.1.) Do not round
intermediate calculations. Round your answers to two decimal
places.
%
A bond has a face value of $1,000, coupon rate of 8%, and matures in 6...
A bond has a face value of $1,000, coupon rate of 8%, and
matures in 6 years. Imagine that the market interest rate is 6%,
but immediately after you buy the bond the rate drops to 5%. What
is the immediate effect on the bond price?
Hint: the effect is the price of the bond after the change minus
the price of the bond before the change.
A bond that matures in 15 years has a $1,000par value. The annual coupon interest rate...
A bond that matures in 15 years has a $1,000par value. The
annual coupon interest rate is 12 percent and the market's
required yield to maturity on acomparable-risk bond is 14 percent.
What would be the value of this bond if it paid interest annually?
What would be the value of this bond if it paid interest
semiannually?
A bond with a face value of $1,000 matures in 9 years and has a 7%...
A bond with a face value of $1,000 matures in 9 years and has a
7% semiannual coupon. The bond currently is traded at $920. Which
of the following statements is CORRECT?
A bond with a face value of $1,000 matures in 12 years and has a 9...
A bond with a face value of $1,000 matures in 12 years and has a
9 percent semiannual coupon. The bond has a nominal yield to
maturity of 6.85%, and it can be called in 4 years at a call price
of $1,045. Assume equilibrium, which of the following statement is
correct? (hint: what kind of bond is this?)
Select one:
a. The bond is currently traded at a discount.
b. The expected current yield will decrease.
c. All else...
An 8% semiannual coupon bond matures in 4 years. The bond has a face value of...
An 8% semiannual coupon bond matures in 4 years. The bond has a
face value of $1,000 and a current yield of 8.3561%. What is the
bond's price? Do not round intermediate calculations. Round your
answer to the nearest cent. $ What is the bond's YTM? (Hint: Refer
to Footnote 6 for the definition of the current yield and to Table
7.1) Do not round intermediate calculations. Round your answers to
two decimal places. %
A 7% semiannual coupon bond matures in 5 years. The bond has a face value of...
A 7% semiannual coupon bond matures in 5 years. The bond has a
face value of $1,000 and a current yield of 7.4658%. What are the
bond's price and YTM? (Hint: Refer to Footnote 6 for the definition
of the current yield and to Table 7.1) Do not round intermediate
calculations. Round your answer for the bond's price to the nearest
cent and for YTM to two decimal places.
Bond’s price: $
YTM: %
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