Question
In: Accounting
Issue Price The following terms relate to independent bond issues: 640 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
640 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
640 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
810 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
2,110 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
| Situation | Selling Price of the Bond Issue |
| a. | $ |
| b. | $ |
| c. | $ |
| d. | $ |
Solutions
Expert Solution
a)
b)
c)
d)
| Situation | Selling Price of the Bond Issue | |
| a | $ 591,360 | =640*924 |
| b | $ 590,720 | =640*923 |
| c | $ 708,750 | =810*875 |
| d | $ 1,217,470 | =2110*577 |
ekkarill92 answered 2 years agoRelated Solutions
Issue Price The following terms relate to independent bond issues: 640 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
640 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
640 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
830 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
1,950 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 460 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
460 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
460 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
820 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
1,840 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 460 bonds; $1,000 face value; 8%...
Issue Price
The following terms
relate to independent bond issues:
460 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
460 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
890 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
1,830 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate
present value table:
PV of $1 and PV of
Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
500 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
500 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
800 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
2,000 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Required:
Assuming the market rate of interest is 10%, calculate the
selling price for each bond issue. Refer...
Issue Price The following terms relate to independent bond issues: 420 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
420 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
420 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
820 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
2,190 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 650 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
650 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
650 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
760 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
2,060 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 420 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
420 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
420 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
820 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
2,190 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 530 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
530 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
530 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
900 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
2,160 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 430 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
430 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
430 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
810 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
2,110 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
Issue Price The following terms relate to independent bond issues: 550 bonds; $1,000 face value; 8%...
Issue Price
The following terms relate to independent bond issues:
550 bonds; $1,000 face value; 8% stated rate; 5 years; annual
interest payments
550 bonds; $1,000 face value; 8% stated rate; 5 years;
semiannual interest payments
860 bonds; $1,000 face value; 8% stated rate; 10 years;
semiannual interest payments
1,970 bonds; $500 face value; 12% stated rate; 15 years;
semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the...
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