Question

Sunland Company issued 6%, 9-year, $290,000 par value bonds that
pay interest annually on April 1. The bonds are dated April 1,
2022, and are issued on that date. The discount rate of interest
for such bonds on April 1, 2022, is 8%.

Click here to view the factor table.

*(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)*

What cash proceeds did Sunland receive from issuance of the bonds?
*(Round answer to 0 decimal places, e.g.
125.)*

Cash proceeds from issuance of the bonds |

You are purchasing a car for $44,000, and you obtain financing
as follows: $2,800 down payment, 12% interest, semiannual payments
over 5 years.

Click here to view the factor table.

Compute the payment you will make every 6 months. *(For
calculation purposes, use 5 decimal places as displayed in the
factor table provided. Round answer to 2 decimal places, e.g.
52.75.)*

Payment |

Answer #1

1 | ||

Cash proceeds from issuance of the bonds |
253768 |
or 253769 |

Workings: |
|||

Annual interest | 17400 | =290000*6% | |

Amount | PV factor 8% | Present value | |

Annual interest | 17400 | 6.24689 | 108696 |

Principal | 290000 | 0.50025 | 145073 |

Total | 253768 | ||

PV factor 8% | |||

Annual interest | 6.24689 | =(1-(1.08)^-9)/0.08 | |

Principal | 0.50025 | =1/1.08^9 |

2 | ||

Price of Car | 44000 | |

Less: Down payment | 2800 | |

Amount of financing | 41200 | |

Divide by PV factor | 7.36009 | =(1-(1.06)^-10)/0.06 |

Payment |
5597.76 |

sheridan Company issued 8%, 8-year, $2,461,300 par value bonds
that pay interest semiannually on October 1 and April 1. The bonds
are dated April 1, 2017, and are issued on that date. The discount
rate of interest for such bonds on April 1, 2017, is 12%. Click
here to view the factor table. (For calculation purposes, use 5
decimal places as displayed in the factor table provided.) What
cash proceeds did Sheridan receive from issuance of the bonds?
(Round answer...

Cullumber Company is about to issue $336,000 of 9-year bonds
paying an 11% interest rate, with interest payable annually. The
discount rate for such securities is 10%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
How much can Cullumber expect to receive for the sale of these
bonds? (Round answer to 0 decimal places, e.g.
2,575.)
Cullumber can expect to receive
$enter a dollar amount to be...

Sunland Company is about to issue $450,000 of 10-year bonds
paying an 11% interest rate, with interest payable annually. The
discount rate for such securities is 13%. Click here to view the
factor table. (For calculation purposes, use 5 decimal places as
displayed in the factor table provided.) In this case, how much can
Sunland expect to receive from the sale of these bonds? (Round
answer to 0 decimal places, e.g. 2,575.)

Concord Corporation is about to issue $290,000 of 10-year bonds
paying an 12% interest rate, with interest payable annually. The
discount rate for such securities is 10%. Click here to view the
factor table 1. Table 2 Table 3 Table 4 How much can Concord expect
to receive for the sale of these bonds? (For calculation purposes,
use 5 decimal places as displayed in the factor table provided,e.g.
5.25471. Round answer to 0 decimal places, e.g. 2,525.)

vanhoe Company is about to issue $344,000 of 6-year bonds paying
an 11% interest rate, with interest payable annually. The discount
rate for such securities is 10%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
How much can Ivanhoe expect to receive for the sale of these bonds?
(Round answer to 0 decimal places, e.g.
2,575.)
Ivanhoe can expect to receive
$enter a dollar amount to be...

Wildhorse Co. earns 9% on an investment that will return
$530,000 9 years from now.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
What is the amount Wildhorse should invest now to earn this rate of
return? (Round answer to 2 decimal places, e.g.
5,275.25.)
Wildhorse Co. should invest
$enter an amount to be invested in dollars rounded to 2 decimal
places
Blossom Company earns 4% on...

Sheridan Company receives a $80,000, 9-year note bearing
interest of 10% (paid annually) from a customer at a time when the
discount rate is 11%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
What is the present value of the note received by Sheridan?
(Round answer to 2 decimal places, e.g.
25.25.)
enter the present value of the note received in dollars rounded
to 2 decimal places

Cullumber Company receives a $87,000, 4-year note bearing interest
of 6% (paid annually) from a customer at a time when the discount
rate is 8%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
What is the present value of the note received by Cullumber?
(Round answer to 2 decimal places, e.g.
25.25.)
Present value of note received
$enter the present value of the note received in dollars...

Stacy Alvarez is investing $381,500 in a fund that earns 11%
interest compounded annually.
Click here to view factor tables
What equal amounts can Stacy withdraw at the end of each of the
next 16 years? (Round factor values to 5 decimal
places, e.g. 1.25124 and final answers to 0 decimal places, e.g.
458,581.)
Yearly withdrawals
$
Chris Inc. will deposit $56,600 in a 11% fund at the end of each
year for 7 years beginning December 31, 2020.
Click...

Brief Exercise A-14 Dempsey Railroad Co. is about to issue
$262,000 of 10-year bonds paying an 11% interest rate, with
interest payable semiannually. The discount rate for such
securities is 12%. Click here to view the factor table. (For
calculation purposes, use 5 decimal places as displayed in the
factor table provided.) In this case, how much can Dempsey expect
to receive from the sale of these bonds? (Round answer to 0 decimal
places, e.g. 2,525.) Dempsey can expect to...

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