2.A company has issued 10-year bonds, with face value of 1,000,000 in 1,000 units. Interest at aid quarterly. If an investor desires to earn 20% nominal interest on 150,000 worth of these what would the selling rice have to be?
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- A company has issued 10-year bonds, with a face value of $1,000,000 in 1,000 dollar units. Interest at 16% is paid quarterly. If an investor desires to earn 20% nominal interest on $100,000 worth of these bonds, what would be the selling price have to be?A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interestat 16% is paid quarterly. If an investor desires to earn 20% nominal interest (compoundedquarterly) on $100,000 worth of these bonds, what would the purchase price have to be?A.When market rate of interest was 12%, Joshkin Corporation issued $1,000,000 11%, 10-year bonds that pay interest annually. The selling price of the bond issue IS? B.What is the present value of $40,000 to be received in three years, at 12% compounded annually? $ __________ Show Your Work
- A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8% is paid semiannually. If an investor desires to earn 12% nominal interest (compounded semiannually) on $10,000 worth of these bonds, what would the purchase price have to be? Calculate, don't use excelAssume that Beach Inc. has an issue of 20-year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today?A company has issued 10-year bonds, with a face value of P1,000,000 in P1,000 units. Interest at 16% is paid quarterly. If an investor desires to earn 20% nominal interest on P100,0000 worth of these bonds, what would 2. the selling price have to be? 3. A P1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at par at the end of this period. If it is sold now for P1,390, determine the yield at this price. 4. A young mechanical engineer is considering establishing his own small company. An investment of P400,000 will be required, which will be recovered in 15 years. It is estimated that sales will be P800,000 per year and that operating expenses will be as follows:
- 2. DEF Company will issue $8,000,000 in 10%, 10-year bonds when the market rate of interest is 7%. Interest is paid semiannually. Required: a. Will this interest structure result in a Premium for DEF company or a Discount? b. How much cash will be received from the issuance of the bond? c. How much will the semi-annual interest payment be on the bond?A company has issued 11-year bonds, with a face value of Php1,000,000, in P1,000 units. Interest at 15% is paid quarterly. If an investor desires to earn 21% nominal interest on Php100,000 worth of these bonds, what would the selling price have to be?A company issued bonds with a par value of $250,000 and a maturity of 25 years. The Bonds pay interest every six months based on a nominal interest rate of 8% per year. If on the date of issuance of the bonds the market rate (yield) is 10%: a. What will be the selling price of the bonds? b. If after 15 years the company retires the bonds, paying the amount of $225,000, how much will the gain or loss on debt retirement? Go back and assume that the market rate is 5.75%. a. What will be the selling price of the bonds? b. Make the journal entry to recognize interest expense in the third six-month period of the bonds. Assume that the bonds do NOT pay periodic interest. a. What will be the selling price of the bonds? b. Make the journal entry to recognize interest expense in the third year of the bonds.
- A company has issued a $20,000, 10 year bond. Each bond pays interest quarterly of 2%. Determine the amount a purchaser has to pay for the bond, if it yield a 12% compounded quarterly. a. PW = $32,000 b. PW = $31, 902 OC. PW = $15,378 d. PW = $28,000A company is offering bonds that pay $100 per year indefinitely. If you require a 12% return on these bonds—that is, the discount rate is 12%—what is the value of each bond?Suppose a firm is issuing bonds. Each bond has a face amount of $1,000, a stated rate of 8%, and a 10-year term. Coupon (interest) payments are made annually. When the bonds are issued, the market rate for similar bonds is 8%. After a year, the bond is selling for $1,015. What is the yield to maturity?