Calculate the present value to calculate the price of bond

Assignment Help Accounting Basics
Reference no: EM132092386

Question - On January 1, 2012, Esra Corporation sold 4% bonds having a maturity value of $300,000. The market determined that 5% was the appropriate rate of interest, given the risks that Esra Corporation to bondholders. The bonds are dated January 1, 2012, mature January 1, 2015, and pay interest on June 30 and December 31 of each year.

Calculate the present value to calculate the price of the bond?

Reference no: EM132092386

Questions Cloud

Implement some project : In addition to choosing a language in which to implement some project, it's not uncommon to choose a "framework"
Almost no technology to support their marketing efforts : Imagine that you are consultant hired by company that has been traditional brick-and-mortar company with almost no technology to support their marketing efforts
How centralized are it services within the organization : What functions or services does the IT department provide? How centralized are IT services within the organization?
With so many languages from which to choose : With so many languages from which to choose for a website's back end (among them C#, Java, JavaScript, PHP, Python, Ruby, et al.)
Calculate the present value to calculate the price of bond : The bonds are dated January 1, 2012, mature January 1, 2015, Calculate the present value to calculate the price of the bond
Reliable fixes and low costs and the cheapest prices : The mechanic often advertised on billboards, writing “Reliable fixes and low costs” and “The cheapest prices.”
How could further developing your thinking enrich one : Review the six developmental stages of critical thinking. Where do you most often fall in the process?
What are the minimum and maximum cycle times : The longest task is 2.4 minutes, and the total time for all tasks is 18 minutes. What are the minimum and maximum cycle times
System contributes to the organization effectiveness : Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness

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.

  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!

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