Reference no: EM13865609
Your company plans to issue bonds later in the upcoming year. But with the economic uncertainty and varied interest rates, it is not clear how much money the company will receive when the bonds are issued. The company is committed to issuing 2,000 bonds, each of which will have a face value of $ 1,000, a stated interest rate of 8 percent paid annually, and a period to maturity of 10 years.
Required:
1. Compute the bond issue proceeds assuming a market interest rate of 8 percent. (Do not round until totaling the bond proceeds, at which point you should round the total bond proceeds to the nearest thousand dollars.) Also, express the bond issue price as a percentage by comparing the (rounded) total proceeds to the total face value.
2. Compute the bond issue proceeds assuming a market interest rate of 7 percent. (Do not round until totaling the bond proceeds, at which point you should round the total bond proceeds to the nearest thousand dollars.) Also, express the bond issue price as a percentage by comparing the (rounded) total proceeds to the total face value.
3. Compute the bond issue proceeds assuming a market interest rate of 9 percent. (Do not round until totaling the bond proceeds, at which point you should round the total bond proceeds to the nearest thousand dollars.) Also, express the bond issue price as a percentage by comparing the (rounded) total proceeds to the total face value.
|
The whistle on corporate wrong doing?
: Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
|
|
What about simply checking your face book page once a day?
: Why do you think there is a difference in responses with respect to the use of company software at home on personal computers between active and non-active social networkers? Do you believe it is an ethics failing to take the software home without as..
|
|
Can you think of any circumstances
: What wrong with the founder of a company its former CEO and board chair utilizing corporate assets for personal reasons? Can you think of any circumstances where it would be permissible? That is what would have to happen for this to be acceptable?
|
|
Compute the bond issue proceeds
: Compute the bond issue proceeds assuming a market interest rate of 8 percent. Compute the bond issue proceeds assuming a market interest rate of 7 percent. Compute the bond issue proceeds assuming a market interest rate of 9 percent. Also, express th..
|
|
Computer networking
: 1) If you have 20 stations all connected to the same wire and all using digital transmission. What method of sharing the media must be used? Why do you need a sharing method? 2) Wiring specifications for a protocol such as Ethernet have a maximum l..
|
|
The ethical decisions of a member of the iia?
: Which interests are being referred to in that statement and how might they influence the ethical decisions of a member of the IIA?
|
|
It is the foundation for all aspects of internal control
: It is the foundation for all aspects of internal control providing discipline and structure Explain what is meant by this statement
|
|
What is the total amount of interest earned
: How much money will you have for the trip at the end of year 4 (i. e., after four deposits)? What is the total amount of interest earned over the four years? How much interest revenue did the fund earn in 2015, 2016, 2017, and 2018?
|