Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $54,000. The market interest...

Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $54,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price will the bonds issue? face amount interest payment market interest rate period to maturity issue price ( show the math for this one please)

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ekkarill92 answered 1 year ago

Ultimate Butter Popcorn issues 6%, 15-year bonds with a face amount of $42,000. The market interest...

Ultimate Butter Popcorn issues 6%, 15-year bonds with a face amount of $42,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. What is the issue price?

1. Ultimate Butter Popcorn issues 5%, 15-year bonds with a face amount of $58,000. The market...

1. Ultimate Butter Popcorn issues 5%, 15-year bonds with a face amount of $58,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price will the bonds issue? (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 rate factors. Round"Market interest rate" to 1 decimal place.) Face Amount= Interest Payment= Market Interest Rate= Periods to...

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BA Corp issues 5.0%, 5-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 5.2%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET. 1. $___________How much will be paid in interest each interest payment? 2. $___________ (rounded to nearest dollar). What is the present value of the interest payments? 3. $___________ (rounded to nearest dollar). What is the issue price of...

Stealth Fitness Center issues 9%, 9-year bonds with a face amount of $100,000. The market interest...

Stealth Fitness Center issues 9%, 9-year bonds with a face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price will the bonds be issued? Use Table 2 and Table 4. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount.) Tryna find the Issue price__________

TR issues 6.9%, 5-year bonds with a total face amount of $1,000,000. The market interest rate...

TR issues 6.9%, 5-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 6.8%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you’ve completed the entire problem). 4. $___________ (rounded to nearest dollar). What is the issue price of the bond? 5. $___________ (rounded to nearest dollar). When the company records the first interest payment, how much...

A company issues 7%, 9-year bonds with a face amount of $70,000 for $74,813 on January...

A company issues 7%, 9-year bonds with a face amount of $70,000 for $74,813 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate...

1a. Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $67,000 for $67,000 on...

1a. Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $67,000 for $67,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 1b. Presented below...

Derp Corp issued 15 year bonds payable with a face amount of 70,000 when the market...

Derp Corp issued 15 year bonds payable with a face amount of 70,000 when the market interest rate was 6.5%. The bonds were issued at par. Assume that the accounting year of Derp ends on Dec 31. Journalize the following transactions for Derp. a. Issuance of the bonds payable at par on July 1, 20x0. b. Accrual of interest expense on Dec 31, 20x0. c. Payment of cash interest on January 1, 20x1. d. Payment of the bonds payable at...

Seaside issues a bond that has a stated interest rate of 7%, face amount of $40,000,...

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Hillside issues $2,700,000 of 7%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,333,101. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table...

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