EXHIBIT 13.2 Pacific Healthcare: Long-Term Bond Stated (Nominal) Yields Annual Face Yield to Amount Maturity Payments $ 48,000,000 $32,000,000 $100,000,000 $ 64,000,000 2018 2018 Coupon Current Yield 1/1/2019 Expected Price 2018 Capital Gain Yield 2018 Total Yield
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After completing calculation exhibit 13.2, what questions the board could ask about the numbers?
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- Cornerstone Exercise Debt Issued at a Premium (Straight Line) Refer to the information for Ironman Steel above. Required: Prepare the amortization table for Ironman Steels bonds(Note: Round to the nearest dollar.) Use the following information for Cornerstone Exercises 9-31 and 9-32: Sicily Corporation issued $300,000 in 5% bonds (payable on December 31, 2029) on January 1, 2020, for $257,363. Interest is paid on June 30 and December 31. The market rate of interest is 7%.On January 1, 2025, Metlock Company purchased 10% bonds having a maturity value of $260,000 for $280,761.26. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Metlock Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.Q#9 On June 30, 2021, Singleton Computers issued 5% stated rate bonds with a face amount of $280 million. The bonds mature on June 30, 2036 (15 years). The market rate of interest for similar bond issues was 4% (2.0% semiannual rate). Interest is paid semiannually (2.5%) on June 30 and December 31, beginning on December 31, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Determine the price of the bonds on June 30, 2021.2. Calculate the interest expense Singleton reports in 2021 for these bonds using the effective interest method. 1. Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
- Problem 4 - Bonds Payable Question Information: REQ A Bond Face Stated Effective Life PAR/PREMIUM/DISCOUNT Issuance Value Interest Interest Rate Rate A $ 100,000 6% 6% 10 years B $ 400,000 8% 6% 10 years C $ 600,000 6% 8% 5 years Insert Computations or Amortization Data analytics or Excel Data tools here: REQ B Compute the proceeds of each bond issuance A B C REQ C For Each, indicate whether the balance sheet value of the bond liability will increase, decrease or remain constant over the life of the bond A B C REQ D For Eaqch bond issuance indicate whether the interest expense recognized each period will increase decrease or remain constant over the life of the bond A B CQuestion 4 of 17 -/1 View Policies Current Attempt in Progress Crane Company issues $24000000, 4%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 3%. What are the proceeds from the bond issue? 1.5% 2.0% 3% 4% Present value of a single sum for 5 0.92826 0.90573 0.86261 0.82193 periods Present value of a single sum for 10 0.86167 0.82035 0.74409 0.67556 periods Present value of an annuity for 5 4.78264 4.71346 4.57971 4.45182 periods Present value of an annuity for 10 9.22218 8.98259 8.53020 8.11090 periods O $24000000 O $25099221 O $25106726 O $25095151 MacBook Air IIMC31 The following information pertains to San Francisco Company's issuance of bonds on July 1, 2020. Face amount P10,000,000; Term - 8%; Interest payment dates 10 years; Stated interest July 1 and January 1; rate Effective yield - 12%. 4% 6% PV of an ordinary annuity of 1 for 10 periods PV of an ordinary annuity of 1 for 20 periods PV of a single amount of 1 for 10 periods PV of a single amount of 1 for 20 periods 8.11 7.36 13.59 11.47 0.68 0.56 0.46 0.31 8% 12% PV of an ordinary annuity of 1 for 10 periods PV of an ordinary annuity of 1 for 20 periods PV of a single amount of 1 for 10 periods PV of a single amount of 1 for 20 periods 6.71 6.14 9.82 8.51 0.46 0.56 0.21 0.31 What should be the issue price for each P1,000 bond? a. P 659.60 b. P 768.80 P1,229.40 P1,340.40 с. d.
- QS 14-19A (Algo) Computing bond price C2 Compute the selling price of 8%, 10-year bonds with a par value of $340,000 and semiannual Interest payments. The annual market rate for these bonds Is 10%. Use present value Table B.1 and Table B.3 In Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values In calculations. Cash Flow $340,000 par (maturity) value $13,600 interest payment Price of Bond Table Value Present ValueQS 14-19A (Algo) Computing bond price C2 Compute the selling price of 10%, 10-year bonds with a par value of $290,000 and semiannual interest payments. The annual market rate for these bonds is 12%. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) Answer is complete but not entirely correct. Cash Flow $290,000 par (maturity) value $14,500 interest payment Price of Bond Table Value 0.3118 11.4699 $ S Present Value 90,442 166,314 256,75620.1 Evaluate the following statements: S1 The proceeds of a bond with a face amount of P100,000,000 which sells at 102 will be P102,000,000. S2 The proceeds of a bond with a face amount of P100,000,000 which sells at 98 will be P98,000,000. S3 When bonds are issued at a discount, the bonds payable account may be credited for the proceeds from the issue. S4 When bonds are issued at a premium, amortizing the premium using the effective interest method, will increase the amortization. a. Only 1 statement is correct b. All statements are correct c. Only 2 statements are correct d. Only 3 statements are correct e. All statements are incorrect
- PA10-4 Comparing Bonds Issued at Par, Discount, and Premium [LO10-3] Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2020 Maturity amount and date: $270,000 due in 10 years (December 31, 2029) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2020 Required: 1. Provide the following amounts to be reported on the January 1, 2020, financial statements immediately after the bonds were issued: (Amounts to be deducted should be indicated with minus sign.) ces Case A Case B (issued at 100) (issued at 98) (issued at 105) Case C a. Bonds payable b. Unamortized premium (or discount) c. Carrying value 0 $ 2. This part of the question is not part of your Connect assignment.TABLE 3.9 END-OF-YEAR PAYMENTS Bond A Bond B Bond C Bond D Year 1 100 50 0+1,000 Year 2 Year 3 100 50 100 +1,000 50+1,000 0+ 1,000 Consider the four bonds having annual payments as shown in Table 3.9. All of the bonds have a 15% yield. Which bond has the highest price? Bond A Bond B Bond C Bond D O ooOTABLE 3.9 END-OF-YEAR PAYMENTS Year 1 Year 2 Year 3 Bond B Bond C Bond A Bond A 100 100 100 + 1,000 Consider the four bonds having annual payments as shown in Table 3.9. All of the bonds have a 15% yield. Which bond has the highest price? Bond D Bond B 50 50 50 + 1,000 Bond C 0 0 0 + 1,000 Bond D 0 + 1,000 0 0