Price of bond of gator corporation

Assignment Help Accounting Basics
Reference no: EM13115350

The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest. The yield to maturity (market rate interest) is 10 percent. The bonds a 25-year maturity Using assumption semiannual interest payments: (a) Compute the price of a a bond. (b) Compute the total value of 90 bonds.

Reference no: EM13115350

Questions Cloud

Solving rate of return with excel : You have two investment opportunities. One will have a 10% rate of return on an investment of $500; the other will have an 11% rate of return on a principal of $700.
What do you think : Do you think a comparable spill of a water-insoluble liquid that has a density of 1.20g/mL would have been as harmful to waterfowl and aquatic mammals.
Calculate the final temperature of the mixture : A 17.0-g sample of ice at -19.0°C is mixed with 101.0 g of water at 87.0°C. Calculate the final temperature of the mixture assuming no heat loss to the surroundings.
Computing stock and portfolio beta : There are two stocks, stock A and stock B. The price of stock A today is $70. The price of stock A next year will be $50 if the economy is in recession, $80 if the economy is normal and $95 if the economy is expanding.
Price of bond of gator corporation : The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest.
How much energy in kj must be absorbed : How much energy in kJ must be absorbed to heat up a volume of ocean water 2 m high by 20 km wide by 30 km deep by 3°C.
Direct labor costs and overhead-robbins medical records : Mr. Robbins medical records indicated that a total of 20 labor hours were directly used in providing his care. The cost of the labor was $380. It was expected before the beginning of the year that a total of 90,000 direct labor hours would be cons..
What is the heat capacity of the calorimeter : The combustion of an organic compound releases 35.6 kJ of energy and causes the temperature of a constant volume calorimeter to increase by 4.76 °C .
Price and constant growth rate of stock : Philly Corp's stock recently paid a dividend of $2 per share (Do = $2), and the stock is in equilibrium. The company has a constant growth rate of 5% and a beta of 1.5. The required rate of return on the market is 15%

Reviews

Write a Review

Accounting Basics Questions & Answers

  Computing expected utility cost by high-low method

Frenchy's Company needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows: determine the expected costs for Utilities in August. B. Using the data calculated above, e..

  Determine tax consequences to virginia

Virginia, who was experiencing financial difficulties, was able to adjust her debts as follows. Determine the tax consequences to Virginia.

  Question regarding overhead costs

Trepid Manufacturing Company prepared a fixed budget of 40,000 direct labor hours, with estimated overhead costs of $200,000 for variable overhead and $60,000 for fixed overhead.

  Statements of taxpayers and accounting periods

Which of the following statements is true? Once adopted, an accounting period normally cannot be changed without approval by the IRS.

  Contango market and backwardation market

Write down the difference between a contango market and a backwardation market. What exactly is meant by a basis?

  Incremental analysis and decision making

Crone Enterprises uses a word processing computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices.

  Explain companies are required to report earnings

Publicly traded companies are required to report earnings per share data on the face of the income statement. compare and contrast basic earnings per share with diluted earnings per share for each of the following:

  Depreciation and journal entries

Compute the balance in the Accumulated Depreciation account at the end of 2013 using the straight-line method.

  Single step income statement and retained earnings statement

The following information was taken from the records of Roland Carlson Inc. for the year 2007. Income tax applicable to income from continuing operations $187,000-Prepare a single-step income statement for 2007. Prepare a retained earnings statemen..

  Market values and book values

Building an Income Statement, During the year, the Senbet Discount Tire Company had gross sales of $1.06 million. The firm's cost of goods sold and selling expenses were $525,000 and $215,000, respectively. Senbet alo had note payable of $800,000...

  Journalize the entry for issuance of the preferred stock

Elston Company is authorized to issue 1,000,000 shares of $1 par value common stock. During 2002, its 1st year of operation the corporation has the following stock transactions:

  Journal entries to record issuance of bonds

On the first day of the current fiscal year, $1,000,000 of 10-year, 7% bonds, with interest payable semiannualy were sold for $1,050,000. Present entries to record the following transactions for the current fiscal year:

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