A company issues bonds with a par value of $800,000 on their issue date. The bonds mature
Question:
A company issues bonds with a par value of $800,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in two semiannual payments. On the issue date, the market rate of interest is 8%. Compute the price of the bonds on their issue date.
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
Calculation of Present value of the Bond Face value 800000 Coupon rate ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Corporate Finance questions
-
A company issues bonds with a par value of $200,000 on their issue date. The bonds mature in 10 years and pay a 10% annual contract rate of interest in semiannual payments. On the issue date, the...
-
Citywide Company issues bonds with a par value of $150,000. The bonds mature in five years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. 1. Compute...
-
Jester Company issues bonds with a par value of $600,000 on their stated issue date. The bonds mature in 10 years and pay 6% annual interest in semiannual payments. On the issue date, the annual...
-
A coil with 190 turns, a radius of 5.0 cm, and a resistance of 12 Ω surrounds a solenoid with 230 turns / cm and a radius of 4.5 cm (Fig. 21-65). The current in the solenoid changes at a...
-
The Small Business Administration (SBA) wishes to estimate the mean annual sales of companies that employ fewer than 20 persons. Historical data suggest that the standard deviation of annual sales of...
-
Find the sum of the convergent series. 18 n=0 3n+2 In
-
Source Today earned net income of \(\$ 60,000\) after deducting depreciation of \(\$ 4,000\) and all other expenses. Current assets decreased by \(\$ 3,000\), and current liabilities increased by...
-
For the network in Problem 4, determine the earliest and latest activity times and the slack for each activity. Indicate how the critical path would be determined from this information.
-
Obtain the technology matrix from the input-output table. to A B C from A 0 200 300 B 500 400 300 C 0 0 600 Total Output 1,000 2,000 3,000
-
ReasoningIdentify the error in reasoning used in each of the following statements. In the last three, identify the kind of reasoning. (Assuming that each is further developed, the last three...
-
Citywide Company, issues bonds with a par value of $150,000 on their stated issue date. The bonds mature in five years and pay 10% annual interest in semiannual payments. On the issue date, the...
-
The maturity value of a $50,000, 90-day, 10% note payable is: a. $51,250 b. $48,750 c. $1,250 d. $5,000
-
a. Suppose you want to remove ten fish of an exotic species that have illegally been introduced to a lake. You have three possible removal methods. Assume that q 1 , q 2 , and q 3 are, respectively,...
-
This year Randy paid $29,050 of interest on his residence. (Randy borrowed $464,000 to buy his residence, which is currently worth $514,000.) Randy also paid $2,850 of interest on his car loan and...
-
Kingbird Company has 23,000 shares of $1 par common stock issued and outstanding. The company also has 3,400 shares of $100 par 3% cumulative preferred stock outstanding. The company did not pay the...
-
When a femoropopliteal vein segment is harvested in conjunction with a coronary artery bypass graft, what additional code(s) should be assigned (if any)?
-
Refer to the information below for CakePops Inc. a. Calculate the profit or loss for 2023. b. What caused common shares to change during 2023? Show your calculations. c. What caused the change in...
-
Explain why Durkheim favored quantitative methods in his study of suicide, and summarize the reasons by using keywords such as a) natural science; b) objective; and 3) positivism.
-
How can an understanding of the nervous system help us find ways to alleviate disease and pain?
-
Carlton Stokes owns and operates a car-detailing business named SuperShine & Detailing. For $150, Carltons business will hand wash and wax customers cars, vacuum the interior, and thoroughly clean...
-
Rally, Inc., is an all-equity firm with assets worth $56 billion and 7 billion shares outstanding. Rally plans to borrow $22 billion and use these funds to repurchase shares. The firms corporate tax...
-
The following events pertain to Weaver Cleaning Company: 1. Acquired $15,000 cash from the issue of common stock. 2. Provided services for $6,000 cash. 3. Provided $18,000 of services on account. 4....
-
Gossett Company had the following balances in its accounting records as of December 31, 2015: The following accounting events apply to Gossett for 2016: Jan. 1 Acquired an additional $30,000 cash...
-
The following accounts and balances were drawn from the records of Shearer Company at December 31, 2016: Cash .................. $22,100 Land .................. 43,000 Insurance expense ................
-
Using the Heaviside function u(t) write down a function y(t) that represents the plot below. You may use the plot button below to compare how your function (in green) looks compared to the given...
-
Angie's List is a company launched in 1995 by Angela Hicks to provide online customer reviews for home repair and maintenance jobs. To collect such reviews initially, Angie, by herself, started going...
-
For each of the questions, state the transaction - related audit objective ( s ) being fulfilled if the control is in effect. Question Transaction - related audit objective ( s ) 1 . Are customer...
Study smarter with the SolutionInn App