Question

The following is information for My-Haul company's recent bond issuance. The issue price of the bond...

The following is information for My-Haul company's recent bond issuance. The issue price of the bond is $109,246, and the face value of the bond is $100,000. The coupon rate is 10%, and the market rate is 7%, with interest paid annually. What is the new carrying value after the first interest payment is recorded? (Round the final answer to the nearest dollar.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
AP10-6A   (Bond issuance price, carrying value, and journal entries) Urry Power Ltd. issues bonds and receives...
AP10-6A   (Bond issuance price, carrying value, and journal entries) Urry Power Ltd. issues bonds and receives proceeds of $57,069,000. The bonds mature in 13 years and carry a 9% interest rate paid semi-annually. The bonds were issued at a price of 126.82 to yield 6%. Required a.   Show the journal entry to record the issuance of the bonds. b.   Determine the face value of the bonds and explain why the issuance price of the bonds is not the same as...
Issue Price The following terms relate to independent bond issues: 570 bonds; $1,000 face value; 8%...
Issue Price The following terms relate to independent bond issues: 570 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 570 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 860 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 1,990 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the...
Issue Price The following terms relate to independent bond issues: 430 bonds; $1,000 face value; 8%...
Issue Price The following terms relate to independent bond issues: 430 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 430 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 810 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,110 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the...
Issue Price The following terms relate to independent bond issues: 650 bonds; $1,000 face value; 8%...
Issue Price The following terms relate to independent bond issues: 650 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 650 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 870 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,020 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the...
1. Calculate the price of a bond with Face value of bond is $1,000 and: a....
1. Calculate the price of a bond with Face value of bond is $1,000 and: a. Bond yield of 8.4%, coupon rate of 7% and time to maturity is 5 years. Coupon is paid semi-annually (Bond 1) b. Bond yield of 7%, coupon rate of 8% and time to maturity is 4 years. Coupon is paid semi-annually c. Calculate the price of Bond 1 right after the 5th coupon payment.
Calculate the​ after-tax cost of debt for the following bond. The face value of the bond...
Calculate the​ after-tax cost of debt for the following bond. The face value of the bond is ​$1,000​, interest is paid​ annually, the coupon rate is 14​% and the bond matures in 7 years. Assume that the corporate tax rate is 38​% and the issue price of the bond was ​$870.
On January 1, 2020, Overwater Experiences issues a bond due in 5 years with a coupon/stated...
On January 1, 2020, Overwater Experiences issues a bond due in 5 years with a coupon/stated interest rate of 6% and a face value of $100,000. Interest payments are made semi-annually on 6/30 and 12/31. The market rate for this type of bond is 7%. The bond sold for $95,842. What will be the carrying value of the bond on December 31, 2020?
1,The carrying value of a bond issued at a discount is its face value less the...
1,The carrying value of a bond issued at a discount is its face value less the unamortized portion of the discount?True or false? 2. What happens to the carrying value of bonds issued at a premium over the life of the bond issued ? a.decreases b.decreases c.stays the same 3.the issuance price on bonds sold at par value is a. less than the face value b. equal to the face value c. greater than the face value d. not determinable...
[The following information applies to the questions displayed below.] On January 1, Year 1, Weller Company...
[The following information applies to the questions displayed below.] On January 1, Year 1, Weller Company issued bonds with a $210,000 face value, a stated rate of interest of 10.50%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.50%. Interest is paid annually on December 31. Assuming Weller issued the bond for $227,690, what is the amount of interest...
A bond was purchased on April 15, 2008 and the quoted bond price was $930. The...
A bond was purchased on April 15, 2008 and the quoted bond price was $930. The previous coupon date was January 1, 2008. The next coupon date is January 1, 2009. The bond will mature on January 1, 2015. The bond’s annual coupon rate is 7% and the face value of the bond is $1,000. Coupons will be paid annually. Compute the bond’s yield to maturity on an accrued interest payment basis.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT