Company A repurchased the bond which had been issued many years ago. It has a face...

Company A repurchased the bond which had been issued many years ago. It has a face value of $800,000 and an unamortised premium of $42,000. The bond was repurchased at 106. record the journal entry that the company made when it repurchased the bond.

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ekkarill92 answered 1 year ago

Abascus limited issued 15 year, 14% bonds five years ago. The bond which has a face...

Abascus limited issued 15 year, 14% bonds five years ago. The bond which has a face value of Rs. 100 is currently selling for Rs. 108. a. What is the pre tax cost of debt? b. What is the after tax cost of debt.

A corporate bond with a face value of $100,000 was issued six years ago and there...

A corporate bond with a face value of $100,000 was issued six years ago and there are four years remaining until maturity. The bond pays semi-annual coupon payments of $4500, the coupon rate is 9% pa paid twice yearly and rates in the marketplace are 9.4% pa compounded semi-annually. What is the value of the bond today? a. $98,975.05 b. $98,196.97 c. $100,000.00 d. $98,691.54 e. $84,263.76

A government bond with a face value of $1,000 was issued eight years ago and there...

A government bond with a face value of $1,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays annual coupon payments of $90, the coupon rate is 9% pa and rates in the marketplace are 9.5% p.a. What is the value of the bond today? a. $975.25 b. $1,427.50 c. $1,000.00 d. $972.83 e. $962.14

A corporate bond was issued a few years ago at face value of $1,000 with a...

A corporate bond was issued a few years ago at face value of $1,000 with a YTM of 7% and quarterly paid coupons. Now with 12 years left until the maturity, the company has run into hard times and the yield to maturity has increased to 15%. 1) What is the bond price now? 2) Suppose the company defer the loss to future and will make good on the promised coupon payments. However, the deferred loss will finally drive the...

2 years ago, a company issued a 10-year, 9% coupon bond with a face value of...

2 years ago, a company issued a 10-year, 9% coupon bond with a face value of $1000. The bond makes quarterly coupon payments. Today, the bond yields APR of 10% compounded semi-annually. What is the price of the bond today? I asked this question earlier but the answer I got is wrong. I am trying to figure out how to do this question correctly. Thank you!

Wilson Oil Company issued bonds five years ago at $1,000 per bond. These bonds had a...

Wilson Oil Company issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 9 percent. This return was in line with the required returns by bondholders at that point in time as described below: Real rate of return 3 % Inflation premium 3 Risk premium 3 Total return 9 % Assume that 10 years later, due to bad publicity, the risk premium is now 7 percent...

Carolina issued a 15-year semi-annual non-callable bond five years ago. Bond has a $1,000 face value,...

Carolina issued a 15-year semi-annual non-callable bond five years ago. Bond has a $1,000 face value, coupon rate of 5% and it currently sells for $925. Carolina needs to issue 10-year semi-annual note. Note will be non-callable and is expected to get the same credit rating as outstanding bond issue. If Carolina wants to issue and sell new note at par, find approximate coupon rate that needs to be assigned to the note. (Hint: similar bonds/notes should be providing approximately...

4. Carolina issued a 25-year semi-annual non-callable bond five years ago. Bond has a $1,000 face...

4. Carolina issued a 25-year semi-annual non-callable bond five years ago. Bond has a $1,000 face value, coupon rate of 8% and it currently sells for $925. Carolina needs to issue 20-year semi-annual bond. New bond will be non-callable and is expected to get the same credit rating as outstanding bond issue. If Carolina wants to issue and sell new bond at par, find approximate coupon rate that needs to be assigned to the bond. (Hint: similar bonds/notes should be...

A. Two years ago, you purchased a new10-year bond issued by APPLE with a face value...

A. Two years ago, you purchased a new10-year bond issued by APPLE with a face value of $1,000 and coupon interest rate of 3%. Given the current crisis, bonds of equal risk and maturity are now 2%, so you decide to sell the bond. Calculate the selling price (4 points). Calculate the Annualized HPR from your investment (2).

A bond has a $1000 par value and issued 5 years ago. The bond has 10...

A bond has a $1000 par value and issued 5 years ago. The bond has 10 years to maturity and an annual 8% annual coupon and sells for $990. i) Estimate the bond's current yield ii) Estimate the bond's yield-to-maturity iii) Explain the relationship of the bond price and its yield (Please explain the answer in detail, thank you)

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