For what price would tesla estimate to sell each bond

Assignment Help Accounting Basics
Reference no: EM132984565

Question - Tesla is considering to issue its first bond on July 1, 2021. They would like to issue 10 million bonds with a face value of $1,000 each. The bonds pay a coupon rate of 7% p.a., paid semi-annually. The bonds would mature on July 1, 2033. Yields on bonds with similar risk profiles are 14% p.a. compounded semi-annually, which Tesla estimates will be required for their bonds as well. For what price would Tesla estimate to sell each bond? Enter your answer to the nearest cent (two decimal places).

Reference no: EM132984565

Questions Cloud

Discriminate on the basis of race : "Even if they try to be objective, managers can't help but discriminate on the basis of race, religion, sex, age, cronyism, favoritism and other illegal conside
Prepare journal entries to record warranty claims : Scotty Constructions Ltd provides a 12-month warranty on building work performed by the entity. Prepare journal entries to record warranty claims
Expected labor shortage under circumstances : The company forecast indicates that the need for skilled technical employees in your company will increase dramatically this year. If the company continues on i
Present the plan to the management team : Scenario 1 You have just celebrated your first anniversary as the Human Resources Manager at the Centennial Golf & Country Club. The Country Club is located in
For what price would tesla estimate to sell each bond : Tesla is considering to issue its first bond on July 1, 2021. For what price would Tesla estimate to sell each bond
Describe two examples of information search sources : Describe two examples of information search sources that a potential customer might use in the buyer decision process and how they would be expected to influenc
How many shares of new bonds must jrj issue : If both bonds have the same yield to maturity, approximately how many shares of new bonds must JRJ issue to raise $2,000,000 cash
By what percentage had the pound sterling devalued : By what percentage had the pound sterling devalued in the interim against the Deutsche mark as well against the dollar
What is the current yield : The market's concensus forecast is that one year T-bills will offer 6.8% next year. What is the current yield on a 2 year T-bill if the expectations hypothesis

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find how should the lease be accounted

Find How should the lease be accounted for in the financial statements of Alaska for the year ended December 31, 2019? Why?

  Prepare journal entries to record stevens company''s

Using the gross price method, prepare journal entries to record Stevens Company's purchases if it pays on July 18.

  What would be the incremental revenue

The production capacity of B&B is 65,000 units. Annual sales volume expected in 2021 is 50,000 units. What would be the incremental revenue

  How would the cash dividend payments

Additional cash dividends declared during the year amounted to $100,000. How would the cash dividend payments be reported on a Statement of Cash Flows?

  Prepare the intercompany transaction worksheet elimination

Prepare the intercompany transaction worksheet elimination for the preparation of the 2016 consolidated financial statements.

  Provide a brief explanation supporting position

Indicate whether the statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position.

  Prepare Statement of Profit and Other Comprehensive Income

Prepare the Statement of Profit or Loss and Other Comprehensive Income for JIM Sdn. Bhd. for the year ended 31 December 2019

  Matter of accountability

Classify the controls that you just identified above as either preventive, detective, or corrective controls. How does the matter of accountability (tracing transactions to specific agencies) affect the problem?

  Shareholder basis for the stock

If the entity is an S corporation and the transaction qualifies under § 351, the S corporation's basis for the property and the shareholder's basis for the stock are:

  Prepare a perpetual inventory record for given merchandise

Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method of inventory valuation to determine the company's cost.

  Nitkse company purchased at a cost of 10500 and used 3500

nitkse company purchased at a cost of 10500 and used 3500 kg of materials during may. nitkses standard cost of

  What is amount of interest expense shown on income statement

Your Company issued a $13,000 face value bond on January 1, 2020. The bond was issued at par and carried a 4-year term to maturity. It had a 3% stated rate of.

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