arwick Corporation issues 8%, 5year bonds with a par value of S1,000,000 and semiannual interest eling) price, assuming the following Presert Value factors payments. O, the issue date, the annual market rate for these bond i 6% what the toot issue Present Value Present n i of an Annuity value of $1 3.9927 8.1109 5% .6806 0.6756 0.7473 .7441 104 56% 103% 8.5382 umple Choice $1000000 9.244 08 30 58 792 discount on bonds payable: Multple Choice Occurs when a company issues bonds with a contract rate less than the market rate Occurs when a company Issues bonds with a contract rate more than the market rate increases the Bond Payable account Decreases the total bond Interest expense A company must repay the bank a single payment of $20,000 cash in 3 years for a loan t entered into. The loan present value factor for 3 years at 8% is 07938 The present value of an annuity factor for 3 in 3 years for a loan it entered into. The loan is 18% interest compounded annually The years at 8% s 25771 The present value of the loan rounded) Multiple Choice $15,876 20,000 25195 $7761 i Sharmer Company issues 5% S-year bonds with a par value of $1000,000 and semiannusl interest peyments. On selling) price. assuming the following factors the issue date, the annual market rate for these bonds is 6% what is te bond's Present Value Present of an Annuity value of $ S5x 183% 56% 103% 4.3295 8.7521 4.2124 8.5382 e.7835 0.7812 8.7473 .7441 Multple Coce 957355 1,000,000 1250000 786.745 1213.255 MC Qu. 152 Marwick Corporation Issues... ssues g. 5 year bonds with a per val e ef $1,000,000 and semianrum merest payments. Onthe ksue date, the amal market rate for rese bon* is 6% wh r is the born ittue velting) price, assurming the following Present Value fectors 3.9927 8.1109 4.2124 la 3% 8.5382 Present Value Present i- of an Annuity value of $ 0.6806 .6756 .7473 .7441 18 4x 56 S000000 341 208 MC Qu. 116 A discount on bonds payable: A discount on bonds payable Multple Choice Occurs when a company Issues bonds with a contract rate less than the markot rate Occurs when a company issues bonds with a contract rate more than the market rate Incroases the Bond Payable account Decreases the total bond interest expense s not allowed in many stenes to protect creators MC Qu. 87 A company must repay the bank... A company must repay the bank a single paymemt of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded The present value of an annuityfactor for 3 years at 8%%25771 The present valur ofte oan pounded, K omoorded annually The present value factor for 3 years at 8% 07938 15,876 20000 2639 T2E 51542 MC Qu. 153 Sharmer Company Issues... Shammer Company issues 5% byear bonds with a par value of $100000 and semiannual interest payments on the (seling) price, assurning the following factors anual market fate fortese bonds is 6% what is re bonds issue Present Value " 58 10 3% 5 68 103% of an Annuity 3295 8.7521 4.2124 8.5302 value of 0.7835 .7812 .7473 0.7441 Mumple Cholce 996729 000,000 250000 786 745
