User Account

All Pages

Estimate the issue price of the bonds

Assignment Help Financial Accounting
Reference no: EM132953560

On December 31, 2019, Repsol Corp issued $1,400,000, 9%, 5-year bonds. Interest is payable semiannually on June 30 and December 31. The corporation uses the effective interest method of amortizing bond premium or discount.

Problem 1: Using a financial calculator or excel, estimate the issue price of the bonds under the following three assumptions:

(1) Market Rate is 9%
(2) Market Rate is 8%

Reference no: EM132953560

Questions Cloud

At what price must montana sell its bonds : If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must Montana sell its bonds
Calculate the decision on the irr : Company XYZ is considering investing in a new machine that will cost $15,000. The machine will allow the firm to generate sales of $50,000 per year.
Discuss the importance of intangible assets : Discuss the importance of intangible assets to computing and software companies such as Microsoft, and analyse whether there are aspects of IAS 38
Discuss the recognition criteria of relevance : Discuss the recognition criteria of 'relevance' and 'faithful representation' and provide one example, when an asset may not be recognised
Estimate the issue price of the bonds : On December 31, 2019, Repsol Corp issued $1,400,000, Using a financial calculator or excel, estimate the issue price of the bonds
What was the price of this bond when it was issued : The yield to maturity on this bond when it was issued was 7%. What was the price of this bond when it was issued
Determine the amount the exporter will receive : Assume the time from acceptance to maturity. Determine the amount the exporter will receive if he discounts the B/A with the importer's bank.
Create a scatter with straight lines chart based on the unit : Madhu asks you to provide a visual representation of the break-even data. Create a Scatter with Straight Lines chart based on the units sold
What is the amount of the net income : A Madras firm has a debt-equity ratio of 62 %, a total asset turnover of 1.39, and a profit margin of 7.8 %. The total equity is $672,100.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the current price of this bond

Chelsea Carter is interested in buying a 5-year zero coupon bond whose face value is $1000. What is the current price of this bond

  Land was received as property settlement

Spencer Duck (SSN 000-22-1111) is single and his eight-year-old son, Mitch, lives with him nine months of the year in a rented condominium at 321 Hickory Drive in Ames, Iowa. Mitch lives with his mother, Spencer’s ex-wife, during the summer months. S..

  Percentage-of-completion method

What is Whispering's 2020 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered

  The effect of paying off of accounts payable

Alpha Company had current assets of $120, and current liabilities of $100. This gives them working capital of $20, and a current ratio of 1.2. What will be the effect of paying off $30 of accounts payable?

  Explain the concepts of current and long-term liabilities

Explain the concepts of current and long-term liabilities and give a total of at least five examples of both current and long-term liabilities consisting

  Weighted-average unit cost inventory valuation method

Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31: Beginning work-in-process inventory was 50% ..

  Calculate US Trade and Current Account

Americans bought $20m worth of Kuwait oil. Calculate U.S. Trade, Current Account, Basic, and Performance balances for 2019

  The creation of a new system of government

Three most important developments in the creation of a new system of government between 1775 and 1825.

  What is an agency relationship

What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business

  What entities are included in the financial statements

What entities are included in the financial statements? List three initiatives undertaken by the AICPA during the fiscal year. What was the amount of total net assets for the current year?

  Calculate the cash flow effect of nickolas restructuring

Calculate the cash flow effect of Nickolas's restructuring during fiscal 2017. Aiello Industries recorded a restructuring charge of $37.8 million

  Explain how would you advise your client

The video mentions several skills you need in order to be successful in pursuing a career in finance. Explain how would you advise your client assuming a 10% discount rate?

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