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MPENSATION PLANS provide the focus on ong-term 16.6. In year B, Haloute Co. issues $100,000 in 10% bonds to yield 12%. Although the bonds have

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MPENSATION PLANS provide the focus on ong-term 16.6. In year B, Haloute Co. issues $100,000 in 10% bonds to yield 12%. Although the bonds have a bond date of July I, year A, and don't mature for 10 years, Haloute Co. bonds on 12/3I/F. their FYE, incurring $200 in brokerage fees. e net book value of the bonds on 12/31/F.193357 b. Calculate the market assuming the bonds are currently priced to yield 14% (don't forget to include accrued interest. 192307) e. Provide the 12/3 1/F entry to repurchase and extinguish the bonds. [E/O gain: 58501 value of the bonds (using the "partial interest" metlvod) on 12/3/F d. Repeat b. and c., assuming the market price of the bonds is determined using the "real interest" method. [E/O gain: 5919) e. How would the above answers differ if the bonds were repurchased and held "in treasury rather than extinguished? [dr "Treasury Bonds"] MPENSATION PLANS provide the focus on ong-term 16.6. In year B, Haloute Co. issues $100,000 in 10% bonds to yield 12%. Although the bonds have a bond date of July I, year A, and don't mature for 10 years, Haloute Co. bonds on 12/3I/F. their FYE, incurring $200 in brokerage fees. e net book value of the bonds on 12/31/F.193357 b. Calculate the market assuming the bonds are currently priced to yield 14% (don't forget to include accrued interest. 192307) e. Provide the 12/3 1/F entry to repurchase and extinguish the bonds. [E/O gain: 58501 value of the bonds (using the "partial interest" metlvod) on 12/3/F d. Repeat b. and c., assuming the market price of the bonds is determined using the "real interest" method. [E/O gain: 5919) e. How would the above answers differ if the bonds were repurchased and held "in treasury rather than extinguished? [dr "Treasury Bonds"]

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