A company issued 4%, 10-year bonds with a face amount of $78million. The market yield for bonds of similar risk and maturity is5%. Interest is paid semiannually. At what price did the bondssell? (FV of $1,PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVADof $1) (Use appropriate factor(s) from the tables provided.Enter your answers in whole dollars.)
Table values are based on n= X i= X Cashflow Amount Present value Interest X X Principle X X Price of bonds X
A company issued 4%, 10-year bonds with a face amount of $78million. The market yield for bonds of similar risk and maturity is5%. Interest is paid semiannually. At what price did the bondssell? (FV of $1,PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVADof $1) (Use appropriate factor(s) from the tables provided.Enter your answers in whole dollars.)
| Table values are based on | ||
|---|---|---|
| n= | X | |
| i= | X | |
| Cashflow | Amount | Present value |
| Interest | X | X |
| Principle | X | X |
| Price of bonds | X |
Related questions
| A company issued 8%, 10-year bonds with a face amount of $100million. The market yield for bonds of similar risk and maturity is6%. Interest is paid semiannually. At what price did the bondssell? (FV of $1, PV of $1,FVA of $1, PVA of $1, FVAD of $1 and PVADof $1) (Use appropriate factor(s) from the tablesprovided
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| The Bradford Company issued 10% bonds, dated January 1, with aface amount of $80 million on January 1, 2013. The bonds mature onDecember 31, 2022 (10 years). For bonds of similar risk andmaturity, the market yield is 12%. Interest is paid semiannually onJune 30 and December 31.
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| 2. | Prepare the journal entry to record their issuance by TheBradford Company on January 1, 2013. (Enter your answers inwhole dollars. If no journal entry is required for a transaction,select "No journal entry required" in the first accountfield.) |
The Bradford Company issued 12% bonds, dated January 1, with aface amount of $90 million on January 1, 2016. The bonds mature onDecember 31, 2025 (10 years). For bonds of similar risk andmaturity, the market yield is 14%. Interest is paid semiannually onJune 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1) (Use appropriate factor(s) fromthe tables provided.) |
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| 1. | Determine the price of the bonds at January 1, 2016.(Enter your answers whole dollars.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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