User Account

All Pages

What is the present value of the bonds on January

Assignment Help Accounting Basics
Reference no: EM132487033

Question - Southampton Inc. issued 8% bonds with a face amount of $100 million on January 1, 2018. The bonds mature on December 31, 2032 (15 years). The market rate is 10%. Interest is paid semi-annually on June 30 and December 31. What is the present value of the bonds on January 1, 2018 (rounded to the nearest thousand)?

A. $71,926,000

B. $54,364,000

C. $82,988,000

D. $84,628,000

E. $43,439,000

Reference no: EM132487033

Questions Cloud

Improvement in cardiac function : Given the above information, you diagnose him with congestive heart failure. You consider various medications for his treatment, which aim to improve
Explain the light-dependent reactions of photosynthesis : Briefly explain the light-dependent reactions of photosynthesis: where does this take place, what are the reactants and what is produced?
Different types of clovers in north carolina and minnesota : Why is there are two different types of clovers in North Carolina and Minnesota? Please include the source of variation between these two traits
Identify two specific polysaccharides : Identify two specific polysaccharides and describe where they are found and what their biological role is.
What is the present value of the bonds on January : Interest is paid semi-annually on June 30 and December 31. What is the present value of the bonds on January 1, 2018 (rounded to the nearest thousand)
What is mitosis and what is meiosis : What is mitosis and what is meiosis? and what are the difference between them?
What is the number of common shares outstanding : On September 30, 2019 the company repurchased 500,000 shares of common stock. What is the number of common shares outstanding at December 31, 2019
Explain how a cross between a tetraploid population : Explain how a cross between a tetraploid population called Emmer wheat and a wild diploid wheat gave rise to the hexaploid bread wheat grown through the world
How does the type of accounting reinforce : In what ways does this inform your own thinking about the limits, and possibilities, of information and awareness when it comes to behaviour change?

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