On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond
Question:
On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bond’s issuance be quoted?
A. 1.123
B. 112.30
C. 0.890
D. 89.05
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
Concept introduction Bonds are defined as debt instruments w...View the full answer
Answered By
Marvine mabiya
i am a graduate of kirinyaga university degree of statistics
0.00
0 Reviews
10+ Question Solved
Related Book For
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Question Posted:
Students also viewed these Business questions
-
A total of n balls are to be put into k boxes with the conditions that there will be n1 balls in box I, n2 balls in box 2, and so on, with nk balls being placed in box k (n1 + ... + nk = n) Explain...
-
The following 12 periods of actual demand are to be used to produce a double exponential smoothing forecast for period 13. Use a smoothing constant, , equal to 0.25. Use 57 as the initial forecast...
-
The hot-water needs of a household are to be met by heating water at 55F to 180F by a parabolic solar collector at a rate of 4 lbm/s. Water flows through a 1.25-in-diameter thin aluminum tube whose...
-
Suppose a single 802.11n client is connected to an 802.11n access point and there is no other client or access point in the neighborhood. The client senses the medium, then sends a 2000-Byte frame,...
-
Define the term SRLY and explain its significance and application to a consolidated tax return.
-
What would an upward-sloping demand curve imply about the marginal utility derived from consumption? Why aren't upward sloping demand curves observed in the real world?
-
Calculate NPV-unequal cash flows (Learning Objective 4)} Bevil Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will...
-
Beaufort Vaults Corporation produces and sells burial vaults. On July 1, 2012, Beaufort Vaults Corporation issued $25,000,000 of 10-year, 8% bonds at par. Interest on the bonds is payable...
-
The governmental funds of the City of Westchester report $ 5 4 1 , 0 0 0 in assets and $ 1 5 6 , 0 0 0 in liabilities. The following are some of the assets that the government reports. Prepaid items...
-
1. Assume that, after a rash of bicycle accidents in several cities nationwide, Congress enacts a federal statute prohibiting the use of bicycle couriers. The statute is intended to protect the...
-
What do you have to do to the interest rate and years of maturity if a bond pricing problem tells you that interest is compounded quarterly?
-
Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the...
-
What are the functions and areas of responsibility under the control of the financial manager?
-
Harold Johns found himself in jail in Germany. He was a vice president of Baranca Industries Inc., a U.S. firm that constructs and installs factory equipment. Unfortunately, he was the...
-
In its own Internal Investigation,1 released on September 8, 2010, BP provided its analysis of why the Deepwater Horizon oil rig exploded, precipitating one of the largest oil spills the world has...
-
BP has had a record of mishaps affecting life, the environment, and the property of the company and other stakeholders. On October 26, 2010, the Public Broadcasting System (PBS) in the United States...
-
In 2000,1 Toyota had a strong and growing reputation for quality. Its engineering excellence was peaking with the worldwide introduction of the first successful commercially available hybrid, the...
-
According to the Greenpeace Web page, On16 February last year (1995),Greenpeace learned that the U.K. government had granted permission for Shell Oil to dump a huge, heavily contaminated oil...
-
Electromagnetic wave 1 has a maximum electric field of E0 = 52 V/m, and electromagnetic wave 2 has a maximum magnetic field of B0 = 1.5 T. (a) Which wave has the greater intensity? (b) Calculate the...
-
The nitrogen atoms in N2 participate in multiple bonding, whereas those in hydrazine, N2H4, do not. (a) Draw Lewis structures for both molecules. (b) What is the hybridization of the nitrogen atoms...
-
Benson Enterprises is evaluating alternative uses for a three-story manufacturing and warehousing building that it has purchased for $2.16 million. The company can continue to rent the building to...
-
The Biological Insect Control Corporation (BICC) has hired you as a consultant to evaluate the NPV of its proposed toad ranch. BICC plans to breed toads and sell them as ecologically desirable insect...
-
How is net realizable value calculated?
-
Determine the current ratio ( round to one decimal place ) Current ratio = Current assets / Current Liabilities 7 . 1 9 4 . 3 5 6 . 9 2 1 3 . 7 3
-
premises was demolished at a cost of $ 3 , 3 6 0 , with $ 9 6 0 being received from the sale of materials. in December with payments made to the contractor in 2 0 2 3 as follows. The building was...
-
- 1 ( Financial statements of Leons Furniture Limited / Meubles L on Lt e ) Base your answers to the following questions on the financial statements for Leons Furniture Limited / Meubles L on Lt e in...
Study smarter with the SolutionInn App