Question

Brief Exercise 14-4 Determining the price of bonds [LO14-2]

A company issued 8%, 10-year bonds with a face amount of $100
million. The market yield for bonds of similar risk and maturity is
6%. Interest is paid semiannually. At what price did the bonds
sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) |

Answer #1

A company issued 6%, 15-year bonds with a face amount of $67
million. The market yield for bonds of similar risk and maturity is
6%. Interest is paid semiannually. At what price did the bonds
sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided. Enter your answers in whole dollars. Round final answers
to the nearest whole dollar.)

On September 30, 2018, the San Fillipo Corporation issued 8%
stated rate bonds with a face amount of $220 million. The bonds
mature on September 30, 2038 (20 years). The market rate of
interest for similar bonds was 10%. Interest is paid semiannually
on March 31 and September 30. ((FV of $1, PV of $1, FVA of $1, PVA
of $1, FVAD of $1 and PVAD of $1) (Use appropriate
factor(s) from the tables provided.)
Required:
Determine the price of...

On January 1, 2018, Shirley Corporation purchased 10% bonds
dated January 1, 2018, with a face amount of $13 million. The bonds
mature in 2027 (10 years). For bonds of similar risk and maturity,
the market yield is 12%. Interest is paid semiannually on June 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) from the tables
provided.)
Required: Determine the price of...

On January 1, 2018, Shirley Corporation purchased 12% bonds
dated January 1, 2018, with a face amount of $24 million. The bonds
mature in 2027 (10 years). For bonds of similar risk and maturity,
the market yield is 16%. Interest is paid semiannually on June 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) from the tables
provided.) Required: Determine the price of...

On January 1, 2021, Anne Teak Furniture issued $100,000 of 12%
bonds, dated January 1. Interest is payable semiannually on June 30
and December 31. The bonds mature in 4 years. The annual market
rate for bonds of similar risk and maturity is 14%. What was the
issue price of the bonds? (FV of $1, PV of $1, FVA of $1, PVA of
$1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
a. $89,460...

On January 1, 2018, Darnell Window and Pane issued $18.7 million
of 10-year, zero-coupon bonds for $7,209,660. (FV of $1, PV of $1,
FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)

The Bradford Company issued 12% bonds, dated January 1, with a
face amount of $96 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and
maturity, the market yield is 14%. Interest is paid semiannually on
June 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) from the
tables provided.) Required: 1. Determine...

On January 1, 2018, Bishop Company issued 8% bonds dated January
1, 2018, with a face amount of $21.0 million. The bonds mature in
2027 (10 years). For bonds of similar risk and maturity, the market
yield is 10%. Interest is paid semiannually on June 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) from the tables provided.
Round your intermediate calculations to...

On January 1, 2021, Bishop Company issued 8% bonds dated January
1, 2021, with a face amount of $20.7 million. The bonds mature in
2030 (10 years). For bonds of similar risk and maturity, the market
yield is 10%. Interest is paid semiannually on June 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) from the tables provided. Round
your intermediate calculations to...

On January 1, 2021, Bishop Company issued 8% bonds dated January
1, 2021, with a face amount of $20.7 million. The bonds mature in
2030 (10 years). For bonds of similar risk and maturity, the market
yield is 10%. Interest is paid semiannually on June 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) from the tables provided. Round
your intermediate calculations to...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 3 minutes ago

asked 4 minutes ago

asked 5 minutes ago

asked 7 minutes ago

asked 7 minutes ago

asked 7 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 11 minutes ago