Question
1.) Ivanhoe Company is about to issue $325,000 of 8-year bonds paying an 12% interest rate, with interest payable semiannually. The discount rate for such
1.) Ivanhoe Company is about to issue $325,000 of 8-year bonds paying an 12% interest rate, with interest payable semiannually. The discount rate for such securities is 8%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
How much can Ivanhoe expect to receive for the sale of these bonds?(Round answer to 0 decimal places, e.g. 2,525.)
2)Blossom Company issued 8%, 6-year, $2,400,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2017, and are issued on that date. The discount rate of interest for such bonds on April 1, 2017, is 8%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What cash proceeds did Blossom receive from issuance of the bonds?(Round answer to 0 decimal places, e.g. 125.)
3)Pharoah Company issues a 10%, 5-year mortgage note on January 1, 2017, to obtain financing for new equipment. Land is used as collateral for the note. The terms provide for semiannual installment payments of $47,600. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What are the cash proceeds received from the issuance of the note?(Round answer to 2 decimal places, e.g. 25.25.)
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