5‐year bond is issued with a 5% coupon. After 1 year and 40 days from its issue, the owner decides to sell it. Calculate the price at which the buyer sells the bond (clean price) and the actual price received by the seller. Consider an interest rate of 3%.

Clean price: Answer % (rounded to the second decimal)

Price paid by the buyer: Answer % (rounded to the second decimal)

Use 1 year=365 days for calculations

1. A 20 year annuity has annual payments which increase by $500 each year. The first payment is $10,500 on Jan. 1, 2018. The annual effective interest is 1%. What is the value of the annuity on Oct. 1, 2017?

The answer should be $274,250.53 And I don't have more information about this...this is how the problem looks like.

2. A loan is repaid with level installments payable at the end of each half-year for 3(1/2) years, at a nominal rate of interest of 8% convertible semiannually. After the 4th payment, the outstanding loan balance is $5000. Find the amount of the loan.

3. Perpetuities in arithmetic progression. If a perpetuity has first payment P and each payment increases by Q, then its present value, one period before the first payment, is P/i + Q/i^2 Using this formula, find the present value of a perpetuity-immediate which has annual payments with first payment $360 and each subsequent payment increasing by $40, at annual interest rate 1.3%.

4. Filip buys a perpetuity-immediate with varying annual payments. During the first 5 years, the payment is constant and equal to 10. Beginning in year 6, the payments start to increase. For year 6 and all future years, the current year’s payment is K% larger than the previous year’s payment. At an annual effective interest rate of 9.2%, the perpetuity has a present value of 167.50. Calculate K, given that K < 9.2.

Hugo’s daughter, Wanda, completed her senior year of college in the current year. Hugo paid $5,0000 in qualified education expenses for Wanda in the current year. Hugo is a MFJ taxpayer and has an AGI of $60,000 for the current year. What, if any, education credit will provide Hugo the highest credit and how much is that credit?

Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $11,125 (details in b).
2. Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash.
3. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,600 cash by signing a short-term note payable.
5. Paid $53,125 cash to reduce the long-term notes payable.
6. Issued 3,100 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $51,300.

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Instructions

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

2. Journalize the entries to record the following:

A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)

B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)

3. Determine the total interest expense for Year 1.

4.Compute the price of $37,282,062 received for the bonds by using the present value tables in Appendix A.

Appendix A

In November and December Year 1, a newly organized magazine publisher received $72,000 for 1,000 three-year subscriptions at $24 per year, starting with the January Year 2 issue. What amount should they report in the Year 1 income statement for subscription revenue if none of the magazines were delivered in Year 1?

Your first job out of college will pay you $47,000 in year 1 (exactly one year from today), growing at a rate of 3.9% per year thereafter. You will also receive a one time bonus of $22,000 at the same time as your first salary. You plan to retire in 44 years (you'll receive 44 years of salary). If the applicable discount rate is 5%, what is the present value of these future earnings today? Round to the nearest cent.

A rich aunt has promised you $ 4000 one year from today. In​ addition, each year after​ that, she has promised you a payment​ (on the anniversary of the last​ payment) that is 4 % larger than the last payment. She will continue to show this generosity for 20myears, giving a total of 20 payments. If the interest rate is 4 % ​, what is her promise worth​ today?