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Case Questions casee title: Caterpillar Inc. Taps the Chinese Bond Market answer the questions in frmal financial method with supporting figures and numbers, percentages with
Case Questions casee title: Caterpillar Inc. Taps the Chinese Bond Market answer the questions in frmal financial method with supporting figures and numbers, percentages with explananing and in texe ciatation APA th edition What are they using bonds in China for? What is a dim sum bond? What funding alternatives, other than such bonds, could Caterpillar have pursued? Assume that on July the company issued a billion year bond with annual coupon rate of an annual effective rate of and interest to be paid semiannually. Was this bond issued a face value, at a premium over face value, or at a discount from face value? Explain briefly, and without any computations. What entry will the company make to record that issuance of bonds? What entry will the company make to record the semiannual interest payment on December On June What amount will be presented on the companys balance sheet as of December for the bond? Over the life of the bond, a what is the total amount of interest expense that will be reported in the companys income statements? And b what is the total amount of cash paid for interest? Assume that on December the market value of Caterpillars dim sum bond issuance is million. How would that affect the carrying amount on the balance sheet at this date?
Case Questions
casee title: Caterpillar Inc. Taps the Chinese Bond Market
answer the questions in frmal financial method with supporting figures and numbers, percentages with explananing and in texe ciatation APA th edition
What are they using bonds in China for?
What is a dim sum bond?
What funding alternatives, other than such bonds, could Caterpillar have pursued?
Assume that on July the company issued a billion year bond with annual coupon rate of an annual effective rate of and interest to be paid semiannually. Was this bond issued a face value, at a premium over face value, or at a discount from face value? Explain briefly, and without any computations.
What entry will the company make to record that issuance of bonds?
What entry will the company make to record the semiannual interest payment on December On June
What amount will be presented on the companys balance sheet as of December for the bond?
Over the life of the bond, a what is the total amount of interest expense that will be reported in the companys income statements? And b what is the total amount of cash paid for interest?
Assume that on December the market value of Caterpillars dim sum bond issuance is million. How would that affect the carrying amount on the balance sheet at this date?
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