Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

26.Dn December 31, 2020, Balbond issued 3,000 of its 15year 5%, P1,000 face value bonds for P2,486,431. Interest is payable annually every December 31. The

image text in transcribed
26.Dn December 31, 2020, Balbond issued 3,000 of its 15year 5%, P1,000 face value bonds for P2,486,431. Interest is payable annually every December 31. The effective rate for similar instruments is 8%. How much is the carrying value of the bond as of December 31, 2033? 27. On January 1, 2020, Raybond issued its 10year, 7'98 P1,000,000 convertible bonds at 122. Interest is payable annually every December 31, 2020. The bonds would have sold for P1,154,435 without the conversion feature. The effective interest rate of similar bonds without the conversion feature is 5%. What is the accrued interest as of December 31, 2020? 28. On January 1, 2020, Kabond issued a 3year bond with conversion feature, 9% P1,000,000 at par. Without the conversion feature, the bonds would have sold for 89. Interest is payable semi-annually every June 30 and December 31. On May 30, 2021 the bonds were retired for P1,030,000. At retirement date, the bonds were selling at 91 without the conversion feature. How much was the reduction in the bond conversion privilege at retirement date? 29.Problem BCareful On November 1, 2020, BCareful issued a 3year, 2% P1,000,000 convertible bond at 105. The bonds were selling at P9233365, without the conversion feature, that yields a 10% interest. Transaction costs incurred in relation to the bond issuance amounted to P90,594, immediately after the BIC the bond yield was 14%. The interest on the bonds were payable semiannually every April 30 and October 31. Each P500 peso bond is convertible into 3 ordinary shares. [in lDIctober 31, 2022, there were bondholders who exercised their option, the bonds were converted into 3,000 ordinary shares. The ordinary shares have a par value of P50 and a market value of P?0 at conversion date. How much is the credit to share premium during conversion date? 30. Problem BCareful

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Ethics Of The New Economy Restructuring And Beyond

Authors: Leo Groarke

1st Edition

1554586933, 9781554586936

More Books

Students also viewed these Economics questions

Question

I easily recognize my emotions as I experience them. E-22

Answered: 1 week ago

Question

Explain the triple constraint. Why is it so important?

Answered: 1 week ago