User Account

All Pages

Question - issuance of a bond at face value

Assignment Help Accounting Basics
Reference no: EM132645428

Question - Issuance of a Bond at Face Value

On January 1, 2017, Whitefeather Industries issued 700, $1,000 face value bonds. The bonds have a(n) 10-year life and pay interest at the rate of 10%. Interest is paid semiannually on July 1 and January 1. The market rate of interest on January 1 was 10%. Use the present value tables that may be found by clicking on the present value table links above. Round your answer to the nearest dollar.

Required - Calculate the issue price of the bonds and record the issuance of the bonds on January 1, 2017.

Reference no: EM132645428

Questions Cloud

What is the yield to maturity : What is the yield to maturity of a 9% semiannual coupon bond with a face value of $1,000 selling for $858.52 that matures in 10 years?
Evaluate the methods for collecting evidence of cybercrime : Evaluate the methods for collecting evidence of cybercrime and the types of technical searches that can be used to find cybercrime
What is the capital gain yield on the bonds : The price of the bonds is $1,067.19 to yield 4.77%. What is the capital gain yield on the bonds?
Which days have lower median occupancy rates : Is the median occupancy rate approximately the same throughout the week? If not, which days have lower median occupancy rates
Question - issuance of a bond at face value : Question - Issuance of a Bond at Face Value - Calculate the issue price of the bonds and record the issuance of the bonds on January 1, 2017
Correct price for the coupon bond at time zero : Currently, the one and two - year spot rates on Federal Government zero coupon bonds are 4% and 4.5%. What is the correct price for the coupon bond at time
The rising importance of big-data computing stems : The rising importance of big-data computing stems from advances in many different technologies.
What is the coupon rate : You have just purchased a 15 - year, $1,000 par value US Government bond for $909.20. The yield to maturity on the bond is 8.6%. What is the coupon rate?
What is the entry for the current year cost : What is the entry for the current year's cost of goods sold on a common-sized income sheet?

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