Question

M Corporation issues $460,000 of 9% bonds, due in 11 years, with interest payable semiannually. At...

M Corporation issues $460,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%.
*see the future value/present value factor table*

Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Issue price of the bonds $enter the issue price of the bonds rounded to 0 decimal places

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
Windsor Corporation issues $570,000 of 9% bonds, due in 10 years, with interest payable semiannually. At...
Windsor Corporation issues $570,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds $enter the issue price of the bonds rounded to 0 decimal places
Kingbird Inc. issues $2,085,900 of 9% bonds due in 12 years with interest payable at year-end....
Kingbird Inc. issues $2,085,900 of 9% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. Click here to view factor tables What amount will Kingbird receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Amount received by Kingbird when bonds were issued?
Waterway Inc. issues $2,117,200 of 8% bonds due in 12 years with interest payable at year-end....
Waterway Inc. issues $2,117,200 of 8% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 9%. Click here to view factor tables What amount will Waterway receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Amount received by Waterway when bonds were issued $_________
On January 1, 2018, Water Wonderland issues $10 million of 9% bonds, due in nine years,...
On January 1, 2018, Water Wonderland issues $10 million of 9% bonds, due in nine years, with interest payable semiannually on June 30 and December 31 each year. Use Table 2 and Table 4. 1. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in...
Using the appropriate interest table, compute the present values of the following periodic amounts due at...
Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. $52,480 receivable at the end of each period for 8 periods compounded at 11%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $52,480 payments to be made at the end of each period for 17 periods at 10%. (Round factor values to 5 decimal places, e.g....
$51,270 receivable at the end of each period for 8 periods compounded at 11%. (Round factor...
$51,270 receivable at the end of each period for 8 periods compounded at 11%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $ enter the present value in dollars rounded to 0 decimal places $51,270 payments to be made at the end of each period for 16 periods at 9%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)...
Waterway Railroad Co. is about to issue $460,000 of 6-year bonds paying an 7% interest rate,...
Waterway Railroad Co. is about to issue $460,000 of 6-year bonds paying an 7% interest rate, with interest payable semiannually. The discount rate for such securities is 8%. Click below to view the factor tables. Table 1. Future Value of 1 Table 2. Future Value of an Annuity of 1 Table 3. Present Value of 1 Table 4. Present Value of an Annuity of 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) In...
Spiller Corp. plans to issue 12%, 5-year, $460,000 par value bonds payable that pay interest semiannually...
Spiller Corp. plans to issue 12%, 5-year, $460,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated December 31, 2019, and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar.) If the market rate of interest for the bonds is...
Using the appropriate interest table, answer each of the following questions. (Each case is independent of...
Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) Click here to view factor tables What is the future value of $7,020 at the end of 7 periods at 8% compounded interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The future value $enter the future value in dollars rounded to 0 decimal places eTextbook and Media Click here to view...
Whispering Inc. issues $4,200,000 of 7% bonds due in 12 years with interest payable at year-end....
Whispering Inc. issues $4,200,000 of 7% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12%. What amount will Whispering receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 0 decimal places, e.g. 458,581.) Amount received by Whispering when bonds were issued ——$
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT