Calculate the present value of a $150,000, 7%, 10-year bond that pays $10,500 ($150,000 7%) interest

Question:

Calculate the present value of a $150,000, 7%, 10-year bond that pays $10,500 ($150,000 × 7%) interest annually, if the market rate of interest is 7%. Use Exhibits 3 and 4 for computing present values.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

See More Books

Question Posted: Jul 17, 2012 01:15 AM

See More Questions

Calculate the present value of one dollar 30 years in the future at 10% interest. What does the result tell you about very long-term contracts?
Calculate the present value of the following singleamounts. Future Value $10,000 7,000 6,000 Annual Rate Interest Compounded Period Invested 1. 2. 6% Annually Semiannually Quarterly 5 years 8 years 4...
Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compoundingperiod. Annuity Payment Annual Rate 7% Interest Compounded $4,000 9,000...
The ordinary share capital of PP Ltd (a trading company) is owned 32% by QQ Ltd, 35% by RR Ltd and 23% by SS Ltd. The remaining 10% is owned by various individuals, none of whom own more than 1%. All...
Most large companies are organized as corporations. Furthermore, corporations are often classified as privately held or public corporations, with privately held corporations further distinguished as...
How does Judge Weiner explain why Michael Smyth lost any reasonable expectation of privacy in his e-mail comments?
Know the audience. What is their level of knowledge or familiarity with the subject? What is their rankare they senior managers and key decision makers, or are they your peers? What is their...
Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed these transactions during that first month of operations. July 1 Reyna Rivera invested $80,000 cash in the...
Consider a 15-year, $140,000 mortgage with a rate of 5.80 percent. Five years into the mortgage, rates have fallen to 5 percent. What would be the monthly saving to a homeowner from refinancing the...
Just need help with Exercise 02. Programming language: Java BattleField code: import imagePackage.RasterImage; import java.awt.Color; import java.awt.Composite; import java.awt.Dimension; import...
Knight Co. is considering the following alternative financing plans. Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming income before bond interest...
Calculate the present value of an $80,000, 10%, five-year bond that pays $8,000 ($80,000 10%) interest annually, if the market rate of interest is 10%. Use Exhibits 3 and 4 for computing present...
Brittney Good opened Brittneys Cosmetic Market in London, Ontario on April 1. Brittney offers no sales discount, and 8% PST and 5% GST is charged on all cosmetic sales. The following transactions...
If you are a Super Coffee company and want to partner with Influencers on Instagram. How to find them? Influencer suggestions? How much to pay them? Who are they? Your budget is $250,000 So...
As the Customer Support Manager in the Fast-Moving Consumer Good (FMCG) sector with the ABC Corporation you are expected to address major grievances of customers from our product line and special...
An agent for positive change can be defined as someone who has the capability to influence and motivate those around them to accomplish whatever shared task needed to achieve a common goal, these...
Identify stress-reduction techniques used in organizations (e.g., wellness programs) Evaluate the impact of personal and work-related stress on performance Explain the relationship between...
Company: Viventium Explain which metrics you recommend tracking and why. For example, "these are the 3 to 5 metrics I've chosen; I'm tracking this because it does X, thereby bringing me closer to...
What factors determine the amount of money a firm actually receives when it offers a bond issue to the market? (Appendix)
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...
Find a measure $\mu$ on $(\mathbb{R}, \mathscr{B}(\mathbb{R}))$ which is $\sigma$-finite but assigns to every interval $[a, b)$ with $b-a>2$ finite mass.
At the end of the current year, $12,840 of fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees.
At the end of the current year, $17,555 of fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees.
Connect Realty Co. pays weekly salaries of $16,250 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that...
You plan to buy a house for $325,000 today. If the house is expected to appreciate in value 8% each year, what will its value be seven years from now?
A designated beneficiary of an ABLE account must be ___________ in order to meet the special rules that apply to the increased contribution limit authorized under the Tax Cuts and Jobs Act? a. an...
Stans wholesale buys canned tomatoes from canneries and sells them to retail markets Stan uses the perpetual inventory

Calculate the present value of a $150,000, 7%, 10-year bond that pays $10,500 ($150,000 7%) interest

Question:

Step by Step Answer:

Present value of face amount of 150000 due in 10 years at 7 compounded ann...View the full answer

Accounting

Students also viewed these Accounting questions