User Account

All Pages

What is the implied effective interest rate

Assignment Help Accounting Basics
Reference no: EM132793376

Problem 1: On July 1, 2016, BigTp Company sold three-year $1 million 12% bonds for $1,024,978 to yield 11%. The interests are payable semiannually on June 30 and December 31. Illini also incurred $10,000 in debt issuance costs. What is the implied effective interest rate (half year rate) for the recording of the bonds?

Reference no: EM132793376

Questions Cloud

Make the journal entries necessary to record the purchase : Make the journal entries necessary to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization.
Record the sale of the bonds for WV Inc : Record the sale of these bonds. On September 1, 2018, WV, Inc., bought $60,000 of MD Printer's 20-year, 6% bonds dated January 1, 2017, for $56,920
Prepare the journal entries necessary by garcia to record : Prepare the journal entries necessary by Garcia to record the purchase of bonds and first two interest receipts using effective interest method of amortization
Prepare a investment discount amortization schedule : Assume the bonds were acquired for$312,921 to yield 14%. Prepare a investment discount amortization schedule for the first year of the investment
What is the implied effective interest rate : Illini also incurred $10,000 in debt issuance costs. What is the implied effective interest rate (half year rate) for the recording of the bonds?
How much will brian have in the bank immediately : How much will Brian have in the bank immediately after his 10th deposit? Round your answer to the nearest dollar. Use the full factor
How long will take to accumulate for Kelly Seaver : If Kelly plans to make payments of $3,300 at the end of each year, how long will it take her to accumulate $66,000? Round to the nearest whole year.
Prepare all the journal entries in Chase books for the Jan : On January 1, 2017, Prepare ALL the journal entries in Chase's books for the January 1,2017 through January 1, 2018, in regards to the Run note.
Calculate the selling price for each bond issue : Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations

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