User Account

All Pages

Calculate the present value of the bonds

Assignment Help Accounting Basics
Reference no: EM133123235

Question - On January 1, 2020 Lance Co. issued five-year bonds with a face value of $700,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%.

1. Calculate the present value of the bonds assuming payments are made at the end of the period (round answer to the nearest dollar). Show separately the PV of face value and the interest payment.

2. Calculate the present value of the bonds assuming payments are made at the beginning of the period (round answer to the nearest dollar).

Reference no: EM133123235

Questions Cloud

Learning community and residency : Propose how you might support your colleague in meeting his or her goals for being part of the learning community and residency.
Explain the role of statistics and data analytics : Explain the role of statistics and data analytics in the health care industry. Financial impact on an organization
Calculate the value of the stock today : Earnings and dividends are expected to grow at a rate of 15% during the next 2 years, Calculate the value of the stock today
Technology and systems approach for health care managers : How has technology impacted the health care industry? Provide examples.
Calculate the present value of the bonds : Calculate the present value of the bonds assuming payments are made at the beginning of the period (round answer to the nearest dollar)
Protection of patient data : Protection of patient data has become a critical part of the scope of practice of all healthcare professionals.
How many TV must be produced and sold per year : Windsor Co. has just purchased a $6,000,000 machine to produce big-screen TVs. How many TV must be produced and sold per year
General idea about financial environment : Now that you have a general idea about the financial environment and what it entails, think about how it impacts you on a personal level.
Publicly-traded company and locate relevant dataset : Select an organization or publicly-traded company and locate a relevant dataset (sales, revenue, etc.). Provide an overview of your data, business/organization

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd