Solution-Compute the amount that oriole will realize from

Compute the amount that oriole will realize from the sale

Reference no: EM132708852

Problem 1: On January 2, 2020, Oriole Company wishes to issue $6300000 (par value) of its 8%, 10-year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10%. Using the interest factors below, compute the amount that Oriole will realize from the sale (issuance) of the bonds.

Present value of 1 at 8% for 10 periods 0.4632

Present value of 1 at 10% for 10 periods 0.3855

Present value of an ordinary annuity at 8% for 10 periods 6.7101

Present value of an ordinary annuity at 10% for 10 periods 6.1446

Option 1: $6300000
Option 2: $5525528
Option 3: $6300038
Option 4: $6967964

Reference no: EM132708852

Questions Cloud

What is the cost of the merchandise destroyed by fire : What is the cost of the merchandise destroyed by fire? The CEBU BRANCH of MOCHI Company is billed for merchandise by the home office at 20 percent

Difference between decision making and problem solving : Tina, who's fresh out of cooking school. Guests are praising her dishes, particularly her new signature dish, but both guests and servers are complaining.

Find the present value of an investment in plant : Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $71500 for 15 years and to have a resale value

Identify advantages of traditional training : Identify at least 3 advantages of and of traditional training. In your opinion, which method is more effective for the classroom teaching? Why?

Compute the amount that oriole will realize from the sale : On January 2, 2020, Oriole Company wishes to issue $6300000. Compute the amount that Oriole will realize from the sale (issuance) of the bonds.

Explain employee participation and employee retention : Employee Participation and Employee Retention in View of Compensation. HR issue/problem of Employee Participation and Employee Retention in View.

Find and evaluate what is the project npv : Enterprises is considering a new three-year, If the tax rate is 32 percent and the required return on the project is 11 percent, what is the project's NPV?

What is the ending inventory value at cost for blossom : Find What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.

How are human resources managerial roles and activities : How are human resources managerial roles and activities affected by aspects of leadership planning and compensation? In your opinion is it important for human.

User Account

All Pages

Compute the amount that oriole will realize from the sale

Reference no: EM132708852

Reference no: EM132708852

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT