User Account

All Pages

What is the amount of discount on these bonds at issuance

Assignment Help Accounting Basics
Reference no: EM133022904

Question - Stanford issues bonds dated January 1, 2019, with a par value of $500,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $463,140.

1. What is the amount of the discount on these bonds at issuance?

2. How much total bond interest expense will be recognized over the life of these bonds?

3. Prepare an effective interest amortization table for these bonds.

Reference no: EM133022904

Questions Cloud

How much income would be recorded in fiscal year : Total estimated costs to complete the project are $7,500,000. How much income (revenue net of costs) would be recorded in fiscal year 2019
Prepare the journal entries to record the liquidation : Assume any partner deficiency (debit balance) is repaid with cash by the applicable partner. Prepare the journal entries to record the liquidation
Compute the breakeven sales level in dollars : Tony retails his T-shirts for? $14.99 each and the variable cost per T-shirt is? $4.99. Based on this? information, compute the breakeven sales level in dollars
What cash balance do you need in your retirement account : What cash (nominal) balance do you need in your retirement account on your 65th birthday to provide you with your desired retirement spending stream
What is the amount of discount on these bonds at issuance : Stanford issues bonds dated January 1, 2019, with a par value of $500,000. What is the amount of the discount on these bonds at issuance
Which offer should county hospital take : County Hospital is planning to purchase a new piece of medical equipment with a list price of $3,000,000. Which offer should County Hospital take
Discuss the importance of reporting the transactions : Question - Discuss the importance of reporting the transactions of cash flows in the correct period for a cash based business
Calculate its markup percentage using a total cost approach : Fixed selling and administrative expenses $28. Its desired ROI per unit is $30.59. Calculate its markup percentage using a total cost approach
List three expense accounts related to payroll : Question - List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero

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