User Account

All Pages

Determine the selling price of the bonds

Assignment Help Accounting Basics
Reference no: EM133149160

Question - Sage Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,078,200 of 12% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 10%.

Required - As the controller of the company, determine the selling price of the bonds.

Reference no: EM133149160

Questions Cloud

Compute the discounted payback period for the gamma project : Gamma project has a useful life of 4 year with an initial cost of $1,000,000. Compute the discounted payback period for the gamma project
Determine the transformational leadership style : Determine if the transformational leadership style was the best approach to use.
Determine the net cash provided by investing activities : Based on the above information, determine the net cash provided by (used in) investing activities for the year on the statement of cash flows
What new business might be successful : Given your community or a community with which you are familiar, what new business might be successful?
Determine the selling price of the bonds : At the time of issuance, the market interest rate for similar financial instruments is 10%. Determine the selling price of the bonds
What would your multiplier be for this calculation : However, you aren't required to repay the balance until year 4. Based on the information provided, what would your multiplier be for this calculation
Benefits of geofencing on campus to improve student life : - How could a university leverage the benefits of geofencing on campus to improve student life and safety? Beside the benefits, what are some of the drawbacks a
Justify the ethical and social implications : Identify employees and link their Employee Assistance Program (EAP) use with their absence record to improve well-being programs
Describe 3 types of content controls : 1. With Microsoft Office, you are able work with external content created in another Office program.

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