What is the value of bonds payable when issued

Assignment Help Accounting Basics
Reference no: EM132691846

Question - Midland Brands issues three-year bonds dated 1 January 2015 with a face value of $5,000,000. The market interest rate on bonds of comparable risk and term is 6%. If the bonds pay 3% annually on 31 December. What is the value of bonds payable when issued?

Reference no: EM132691846

Questions Cloud

How much is Elegant Fragrances is most likely to record : The market interest rate is 5.0 percent. Using the effective interest rate method of amortisation, how much is Elegant Fragrances is most likely to record
What is the regular production cost : What is the regular production cost (over the six months from April through September) for a level production plan? (whole number.)
Define prompt dependency and fading : Define prompt dependency and fading and How would you describe prompt dependency to a family member - Reflect on how educators may be unintentionally promoting
Information security standard or compliance law : Decide on an Information Security Standard or Compliance Law that is applicable to your fictional organization
What is the value of bonds payable when issued : Midland Brands issues three-year bonds dated 1 January 2015 with a face value of $5,000,000. What is the value of bonds payable when issued
What the machine net present value is : Using a discount rate of 10%, What the machine's net present value is? Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand.
Overall total cost for this production plan : What is the overall total cost for this production plan? (whole number.) What is the total subcontract cost for this production plan? (whole number.)
How much is the bonds payable value reflected on the balance : The bonds pay 5% interest annually on 31 December. At the time of issue, how much is the bonds payable value reflected on the balance sheet
How many seats should southwest overbook for route : Southwest Airline flights from Pheonix to Miami are typically booked to capacity. However, due to Southwest's lenient rebooking policies, on average 24 customer

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd