On January 1, 2020 Ivanhoe Co. issued five-year bonds with a face value of $810,000 and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2020 Ivanhoe Co. issued five-year bonds with a face value of $810,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 6%. Present value table factors are: Present value of 1 for 5 periods at 6% 0.74726 Present value of 1 for 5 periods at 12% 0.56743 Present value of 1 for 10 periods at 3% 0.74409 Present value of 1 for 10 periods at 6% 0.55839 4.21236 3.60478 Present value of an ordinary annuity of 1 for 5 periods at 6% Present value of an ordinary annuity of 1 for 5 periods at 12% Present value of an ordinary annuity of 1 for 10 periods at 3% Present value of an ordinary annuity of 1 for 10 periods at 6% 8.53020 7.36009 Click here to view factor tables Calculate the issue price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,582.) Issue price of bonds $ On January 1, 2020 Ivanhoe Co. issued five-year bonds with a face value of $810,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 6%. Present value table factors are: Present value of 1 for 5 periods at 6% 0.74726 Present value of 1 for 5 periods at 12% 0.56743 Present value of 1 for 10 periods at 3% 0.74409 Present value of 1 for 10 periods at 6% 0.55839 4.21236 3.60478 Present value of an ordinary annuity of 1 for 5 periods at 6% Present value of an ordinary annuity of 1 for 5 periods at 12% Present value of an ordinary annuity of 1 for 10 periods at 3% Present value of an ordinary annuity of 1 for 10 periods at 6% 8.53020 7.36009 Click here to view factor tables Calculate the issue price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,582.) Issue price of bonds $
Expert Answer:
Answer rating: 100% (QA)
Present value of bond 810000 074726 60528060 In this ... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The company intends to issue 20-year bonds with a face value of $1,000. The bonds carry a coupon rate of 10%, and interest is paid semiannually. On the issue date, the market interest rate for bonds...
-
The Glover Corporation purchased bonds with a face value of $300,000 for $307,493.34 on January 1, 2007. The bonds carry a face rate of interest of 12%, pay interest semiannually on June 30 and...
-
The aggregate supply curve (AS) is positive relationship with price (P) in the short run; therefore the curve is upward sloping from left to right. Whereas, in the long run aggregate supply (LRAS)...
-
You have recently been hired as a consultant for a personal financial planning firm. One of your first projects is creating a retirement plan for a couple, Tom and Helena Keeley. They have just...
-
Cagney Company sold $200,000 of bonds on December 31, 2008. A portion of the amortization table appears below. Required: 1. Determine the stated interest rate on these bonds. 2. Calculate the...
-
The authors of the paper Talking Smack: Verbal Aggression in Professional Wrestling (Communication Studies [ 2008]: 242 258) analyzed the content of 36 hours of televised professional wrestling. Each...
-
The Cold and Sweet (C&S) company manufactures ice-cream bars. The company is considering the purchase of a new machine that will top the bar with high quality chocolate. The cost of the machine is...
-
Big Bend Photo Shop has asked you to determine whether the companys ability to pay current liabilities and total liabilities improved or deteriorated during 2016. To answer this question, you gather...
-
I Need help solving this problem. Problem 24-01 Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assels 1,875,000 Notes...
-
During the month of July, the Town of Lynton recorded the following information related to purchases Amount of Purchase Order Actual Cost General government $ 559,000 $ 499,000 Public safety 744,200...
-
What factors should interior designers consider in terms of indoor air quality? Bear in mind that the type of materials and exterior finishing may impact indoor air quality. Bear in mind that the...
-
Freddy Espinosa, is a person who currently has $ 500,000, the product of your liquidation of the TAME company. Until you know the evolution of your employment situation, decides to invest in...
-
Auditing in accounting is a crucial process that ensures the accuracy and reliability of financial information. It involves the systematic examination of financial statements, internal controls, and...
-
An oil company wishes to study the effects of four different gasoline additives on mean gasoline mileage. The company randomly selects four groups of six automobiles each and assigns a group of six...
-
A genetic experiment with peas resulted in one sample of offspring that consisted of 444 green peas and 168 yellow peas. a. Construct a 90% confidence interval to estimate of the percentage of yellow...
-
2.What are the factors being causes and effects on the underpinning of sukuk market in Malaysia? (10 Marks) 3.Summarise overall situation of sukuk market in Malaysia and justify by policy...
-
Path-goal theory assumes that
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
On January 1, 2013, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2014. Expenditures on the...
-
The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Duxs accounting records is provided also. Additional...
-
At the beginning of 2013, VHF Industries acquired a machine with a fair market value of $6,074,700 by issuing a four-year, noninterest-bearing note in the face amount of $8 million. The note is...
-
Recording payroll and payroll costs Le Banquet Francaise restaurant employs 1 man- ager, 2 chefs, 4 waiters, and 3 helpers. They are paid monthly as follows: All personnel are entitled to a half...
-
Overtime pay for a production department Harnagle Company employs ten produc- tion workers who are paid $7.50 per hour for first shift and a 50 percent overtime premium for any hours worked in excess...
-
Payroll costs and bonus Marsha's Ceramics has two highly-skilled employees who design and produce exquisite ceramic pieces. Each earns a salary of $1,495 per month. Each also gets 1 /2 month of paid...
Study smarter with the SolutionInn App