A $10,000 bond with a coupon rate of 5% was redeemable on July 1, 2028. It was purchased on September 10, 2015 when the yield rate was 6% compounded semi- annually. Determine the purchase price of the bond.
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- n A $105,000 bond redeemable at par on October 15, 2028 is purchased on May 9,2017. The bond interest rate (coupon rate) is 8.94% payable semi-annually and the yield (market interest rate) is 2.24% compounded semi-annually. Should this bond sell at a Premium or a Discount? (Premium or Discount) a.) Determine the value of the coupon. b.) Use Excel's COUPNUM function to find the number of coupons left on the bond. c.) Determine the Present Value of the bond, at the last coupon date. Rounded to 2 decimals. d.) Determine the Present Value of the coupons at the last coupon date. Rounded to 2 decimals. e.) What is the purchase price of the bond on the last coupon date? 1.) Use Excel's COUPDAYBS to determine the number of days from the last coupon date to the purchase date g.) Use Excel's COUPDAYS to determine the number of days between coupon dates. h.) Use the ratio of days as 'n' to calculate the purchase price of the bond on the settlement dateA bond that has a face value of $1,500 and coupon rate of 3.20% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 3.70% compounded semi-annually. $0.00Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Dec 15, 2013 Maturity date Dec 15, 2043 Purchase date June 15, 2023 Coupon rate (%) Market rate (%) 5.00 6.4 Assume that • Bond interest is paid semiannually. . The bond was originally issued at its face value. Bonds are redeemed at their face value at maturity. • Market rates of return are compounded semiannually. Bond price
- A $1000 bond with semi-annual coupons at j2 = 10% payable January 1 and July 1 each year matures on July 1, 2019, for $1050. a) Determine the price on January 1, 2014, to yield j2=1012%j2=1012%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $ b) Is the bond purchased at a premium or a discount? Premium Discount c) Calculate the entries in the bond schedule on July 1, 2014, and January 1, 2015. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places.) Bond InterestPayment Interest on Book Value Book ValueAdjustment Book Value - - -North Co. Issued bonds on July 1, 2018 worth $100,000 with a coupon rate of 10% and an effective interest rate of 8%. Interest is paid annually, every July 1, and bonds mature after 5 years. Required: PV of Bonds: Calculation PV of Principal and PV of Interest and give your explanation about your calculation! Make issuance journal and please explain about the journal! Amortization: Calculation Bond Amortization Table and explain the result! Make Interest adjustment, amortization journal, and explain about the journal! Make Interest payment journal, amortization, and explain about the journal! Journalize Redemption at maturity and explain about the journal!Assume that a bond is issued with the following characteristics: Date of bonds: January 1, 2023; maturity date: Dec. 31, 2027; face value: $200,000; Coupon interest rate: 10 percent paid semiannually; market interest rate: 12 percent; issue price: $185,280; bond discount is amortized using the effective interest method of amortization. What is the amount of bond discount amortization for the June 30, 2023, adjusting entry? A) $559 B) $1,117 C) $10,000 D) $11,117
- 2. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date Purchase Price ? a. $1000.00 5.25% 5.25% January 01, 2024 January 01, 2019 b. $5000.00 4.75% 6.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?6. A $20,000 bond redeemable at par on October 27, 2017, is purchased on November 15, 2006. Interest is 6.7% payabie semi-annually and the yield is 8.3% compounded semi-annually. What is the cash price of the bond?A bond that has a face value of $1,500 and coupon rate of 4.10% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 4.60% compounded semi-annually. Round to the nearest cent Pre Di HOME HINTE hp SUBMIT QUESTION SAVE PROGRESS
- Ma4. 3. A $25000, 11.5% bond with semi-annual coupons redeemable at par March 1, 2025, was purchased on November 15, 2018, to yield 9.5% compounded semi-annually. (a) What was the purchase price of the bond? (b) Find the value of discount or premium. Mention whether the value is premium or discount.A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015. The bond pays 5% compounded semi-annually and the current yield is 6% compounded semi-annually. Round final answers to the nearest cent. a) What was the purchase price of the bond?A $25,000 bond redeemable at par on November 08, 2015 is purchased on February 03, 2006. Interest is 9 3% payable semi-annually and the yield is 7.8% compounded semi-annually (a) What is the cash price of the bond? (b) What is the accrued interest? (c) What is the quoted price?