How to calculate the issue price

Assignment Help Financial Accounting
Reference no: EM132497984

Ultimate Butter Popcorn issues 7%, 20-year bonds with a face amount of $47,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually.

Question 1: At what price will the bonds issue? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round "Market interest rate" to 1 decimal place.)

Bond Characteristics Amount

Face amount$ 47,000

Interest payment$

1,645

Market interest rate 3.0%

Periods to maturity 40

Issue price ..?

How to calculate the issue price ?

Reference no: EM132497984

Questions Cloud

Find after-tax total cash flow for the second year : Find after-tax total cash flow for the second year. Find NPV of the project.
Find cost of the stereo and total amount of interest paid : Find The cost of the stereo and total amount of interest paid. Stereo Inc. sells a stereo system for $400 down and monthly payments
What is the loss or gain on purchase commitment on december : What is the gain/loss on purchase commitment on March 31, 2019. What is the loss/gain on purchase commitment on December 31, 2018
MA601 Theory and Current Issues in Accounting Assignment : MA601 Theory and Current Issues in Accounting Assignment help and solution, Melbourne Institute of Technology - assessment writing service
How to calculate the issue price : Find what price will the bonds issue? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.
How is information reported in the organization statement : How is this information reported in the organization's statement of activities for 2020? At the beginning of 2020, a donor gives a private NFP organization
How much does the donation increase the organization : By how much does this donation increase the organization's net assets with donor restrictions in 2020? At the beginning of 2020
How does the change the reporting for the contribution : How does this change the reporting for this contribution in 2020 and 2021? At the beginning of 2020, a donor makes a documented promise
Inflation and interest rates : ?(Inflation and interest rates?) What would you expect the nominal rate of interest to be if the real rate is 3.7 percent and the expected inflation rate is 7.5

Reviews

Write a Review

Financial Accounting Questions & Answers

  Reported for consolidated cash after acquisition is complete

Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2013. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair..

  Enter adjusting entries

Enter adjusting entries for the following items: The December 31 office supplies inventory was $80. The unexpired portion of the prepaid rent was $600 as of December 31. The unexpired portion of the prepaid insurance was $4070 as of December 31.

  Process involves using same production machinery-equipment

While on vacation in July 2016, you had a conversation with another vacationer, Darryl Barnes, whom you had never met. You two were sitting on the beach and somehow the conversation turned into a discussion of a business scenario that involved a busi..

  Where the business carries the lowest costs in the industry

Cost leadership, on the other hand, looks to reducing the costs of doing business to a point where the business carries the lowest costs in the industry.

  What is its daily transfer payment to other business unit

What is its daily transfer payment to the other business unit? (Quality) Consider the following potential quality problems: Wine that is served in a restaurant sometimes is served too warm, while at other times it is served too cold.

  Assume straight-line amortization

Cramer Company sold five-year, 8% bonds on October 1, 2016. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much in..

  Difference between common stock and preferred stock

Explain the difference between common stock and preferred stock and the reasons why or why not a corporation might utilize these securities. Explain what convertible preferred stock is and some of the reasons why it might be issued

  How the performance of a company can affect a stakeholder

How the performance of a company can affect a stakeholder vs. a shareholder. Compare the position of a stakeholder and a shareholder regarding business

  Evaluate the total deferred tax asset

Evaluate the total deferred tax asset and deferred tax liability amounts at December 31, 2009 and evaluatethe increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2009.

  Compute the roi for each investment project

Compute the ROI for each investment project.- Compute the budgeted divisional ROI. - Calculate the residual.- Calculate the residua income.

  Difference between rent paid by new tenant and rent

Gamison Ltd has leased a warehouse in an industrial section of the twon. The lease is for 5 years and can only be cancelled by Gamison if Gamisons reimburses the landlord for the costs of re-letting the warehouse including any costs of finding a new ..

  How much did janavee bid on the job

How much did Janavee bid on the job

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