Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please, I need help making sure I got this correct? Citywide Company issues bonds with a par value of $150,000 on their stated issue date.
Please, I need help making sure I got this correct?
Citywide Company issues bonds with a par value of $150,000 on their stated issue date. The bonds mature in five years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 8%. (Table B1, Table B.2, Table B.3. and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest payment for these bonds? 2. How many semiannual interest payments will be made on these bonds over their life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium 4. Compute the price of the bonds as of their issue date 5. Prepare the journal entry to record the bonds' issuance Complete this question by entering your answers in the tabs below Req 1 to 3 Req 4 Req 5 Compute the price of the bonds as of their issue date Table Values are Based on: 10 4.0% Table Value 0.6756 8.1109 Present Value Cash Flow Par (maturity) value Interest (annuity) Price of bonds Amount $ 150,000! 101,340 60,832 162,172 7.5001 =Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started