What is the value of this bond in balance sheet

Assignment Help Accounting Basics
Reference no: EM133118331

Question - Assume that a firm issues a par bond of $1,000,000 on January 1, 2015, due in five years. The bond has a 10% coupon rate paid semi-annually. What is the value of this bond in 2017 balance sheet?

a. $1,000,000

b. $100,000

c. $0

d. $50,000

Reference no: EM133118331

Questions Cloud

Concept of transformational leadership : The concept of transformational leadership is difficult to understand. Describe any potential negative consequences of transformational leadership.
Shortest payback period : 1. Given the information in the table below, which of the following statements is true? Assume the cost of capital is 12%.
What are the firm roe and roic : Baker Industries' net income is $24000, its interest expense is $6000, and its tax rate is 35%. What are the firm ROE and ROIC
Standard deviation of monthly changes : Suppose that the standard deviation of monthly changes in the price of commodity A is $1. The standard deviation of monthly changes in a futures price for a con
What is the value of this bond in balance sheet : Assume that a firm issues a par bond of $1,000,000 on January 1, 2015, due in five years. What is the value of this bond in balance sheet
What is the futures price per unit : The initial margin is $8,500 and the maintenance margin is $6,500. What is the futures price per unit below which there will be a margin call?
What is increase in liabilities section of murphy balance : Murphy Inc. has two new liabilities. What is the increase in liabilities section of Murphy Inc.'s balance sheet due to these two new liabilities
Compute the adjusted profit for the year ended december : On February 28, 20x2, a building with carrying amount of P1,800,000 on December 31, 20x1 was totally razed by fire. Compute the adjusted profit for the year end
Hedging one month exposure to price of commodity a : Suppose that the standard deviation of monthly changes in the price of commodity A is $1. The standard deviation of monthly changes in a futures price for a con

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