Calculate amount of annual coupon payment that bondholders

Reference no: EM133369896

Question. On January 1st, 2023, XYZ Ltd. issued $12 million worth of bonds with a coupon rate of 8% payable annually on December 31st of each year. The bonds mature on December 31st, 2032. Calculate the amount of annual coupon payment that bondholders would receive.

2. ABC Inc. issued $20 million worth of bonds on January 1st, 2022. The bonds mature on December 31st, 2032 and carry an annual coupon rate of 7% payable semi-annually on June 30th and December 31st of each year. A market interest rate of 9% was effective throughout 2022. Calculate the amount of premium or discount on the bonds issued.

3. DEF Ltd. generates a total cash flow of $197 million in a boom year and $88 million in a recession. The company's required debt payment at the end of the year is $122 million. The market value of the company's outstanding debt is $95 million. Calculate the expected return on the company's debt.

4. GHI Inc. had beginning Capital of $90,000 and JKL Inc. had beginning Capital of $60,000. During 2022, the partnership earned an income of $80,000. GHI made drawings of $24,000, while JKL made drawings of $18,000. Calculate the amount of income that GHI and JKL would receive based on their agreement for income sharing (45% to GHI and 55% to JKL).

5. MNO Ltd. issued $30 million worth of bonds on January 1st, 2021. The bonds mature on December 31st, 2030 and carry an annual coupon rate of 9% payable semi-annually on June 30th and December 31st of each year. A market interest rate of 11% was effective throughout 2021. Calculate the amount of the bond's issue price.

6. PQR Inc. has a total revenue of $100 million and total expenses of $80 million. Calculate the company's net income.

7. STU Ltd. had an opening balance of $100,000 in its cash account. During the year, the company made sales of $500,000, collected $400,000 from customers, and made payments of $350,000 for operating expenses. Calculate the closing balance in the company's cash account.

8. VWX Inc. had beginning inventory of $50,000. During the year, the company purchased goods worth $80,000 and sold goods worth $120,000. Calculate the company's cost of goods sold.

9. YZ Ltd. has a total asset of $500,000 and total liabilities of $300,000. Calculate the company's equity.

10. ABCD Inc. had an opening balance of $100,000 in its accounts receivable account. During the year, the company made sales of $500,000 and collected $450,000 from customers. Calculate the closing balance in the company's accounts receivable account.

Reference no: EM133369896

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