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What is the value of the bond upon issuance

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Question - Silver Corporation issued a five-year, P1,000 non-callable bond which pays P40 semi-annually on June 30, 2015. The bond with similar risk yields a rate of 9%.

Required -

1. Is the bond issued at a face, at a premium or at a discount?

2. What is the value of the bond upon issuance?

3. What is the value of the bond on December 31, 2015?

4. How much is the total interest payment in 2015?

5. What is the value of the bond on December 31, 2016?

6. How much is the total interest expense in 2016?

Reference no: EM133076787

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