What the company would report for its net bond liability

Assignment Help Accounting Basics
Reference no: EM132714098

Question - Gamma Inc. issued bonds with 4% stated annual coupon rate on October 1, 2015. The bonds have a maturity date of September 30, 2025, and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2016. The effective interest rate established by the market at the time of bond issuance was 6% per year. Assume that Gamma issued the bonds for $255,369,000 cash and uses straight-line amortization of its discounts. As of March 31, 2016, which of the following is closest to what the company would report for its net bond liability balance, rounded to the nearest thousand? Explain

A) $258,369,000

B) $300,000,000

C) $253,137,000

D) $257,601,000

Reference no: EM132714098

Questions Cloud

Development of the railway transport : How is the development of the railway transport for goods in west africa?
What are the retailing strategies of sears and wal-mart : What are the retailing strategies of Sears and Wal-Mart? What is driving the performance of these two companies? How do Sears and Wal-Mart create
Tibetan culture about the mind and stress : What can be learned from the Tibetan culture about the mind and stress? What do the views espoused by theorists have in common?
Break-even quantity for the manual process : Jane and Zack have joined forces to start J&Z Protein Products, a processor of packaged protein products for restaurants. Jane has years of food process
What the company would report for its net bond liability : As of March 31, 2016, which of the following is closest to what the company would report for its net bond liability balance, rounded to the nearest thousand
Debate the applicability of role theory : Identify an area of practice where change theory may find applicability. Debate the applicability of role theory in your healthcare setting.
Describe the revenue recognition policy that believe : Describe the revenue recognition policy that you believe that the company should follow, explaining the basis for your recommendation.
Optimal solution using the graphical solution procedure : Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a catcher's model. The firm has 900 hours of production time
What is the balance in the allowance for doubtful accounts : Allowance for doubtful accounts balance is $1,200. What is the balance in the allowance for doubtful accounts after the bad debt expense is recorded

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