On January 1, 2020, Company H issues a $20,000,000 bond with a 9% coupon rate. The bond has a present value of $20,811,010, and the market interest rate was 8%. The bond will have a 5-year life, pay interest semi-annually, and amortize using a straight line. The bond's face value, a discount, or a premium? B) How much would the semi-annual interest payments cost? C) How much will be added to interest expense each time a payment of interest is made? D) What will be the bond's carrying value on December 31, 2021?
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- Company H issues a $20,000,000 bond on January 1, 2020 with a coupon rate of 9%. The present value of the bond is $20,811,010 and the market rate of interest was 8%. The bond has a 5-year life and will make semiannual interest payments and will use the straight line amortization method. A) Is the bond issued at a face value, a discount, or premium? B) What is the amount of the semi-annual interest payments? C) What is the amount that will be recorded to interest expense each time an interest payment is made? D) What is the carrying value of the bond on December 31, 2021?GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors cash interest payments semi annually (every six months). The market rate for this bond is 6% and the coupon rate is 5% What is the present value of the face value for this bond (Use Present Value Table) what is the present value of the coupon payment? (Use the Present value table)Company I issues a $40,000,000 bond on January 1, 2020 with a coupon rate of 7%. The present value of the bond is $37,282,062 and the market rate of interest was 8%. The bond has a 10-year life and will make semiannual interest payments and will use the straight line amortization method. A) Is the bond issued at a face value, a discount, or premium? B) What is the amount of the semi-annual interest payments? C) What is the amount that will be recorded to interest expense each time an interest payment is made? D) What is the carrying value of the bond on December 31, 2021?
- On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) $1.152.74 O $1,15411 $1.155.30 $1.156.25 O$1,158.85On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 5.6s34" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 6.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices a. $883.78 b. $889.60 c. $885.22 d. $886.60 e. $887.12GHI Company issued a 7-year bond on January 2, 2020, with a par value of $550,000 and pays its investors cash interest payments semi-annually ( every six months). The market rate for this bond is 6% and the coupon rate is 5%. What is the present par value (PV) of the Face Value? For this Bond?
- You decide that you will issue floating rate bonds on 15 May 2021. The bonds have a face value of $1,000 anually semi-annual coupon payments at a rate based on BBSW plus a margin of 1.6%. The day fraction count to be Actual/365. If the BBSW is 3.1% on 15 May 2021 and 4.4% on 15 November 2021, how much interest will be payable on 15 November 2021?A $15,000 bond with a coupon rate of 4% compounded semi-annually is redeeemable on February 1, 2024. It was purchased on June 13, 2018 when the yield rate was 5% compounded semi-annually. What is the purchase price of the bond?2. The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March 1, 2023, is $990. The last coupon payment was made on March 1, 2019. If you buy the bond on July 1, 2019, what is the total price you must pay for the bond?
- GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors cash interest payments semi annually (every six months). The market rate for this bond is 6% and the coupon rate is 5% What is the present value of the face value for this bond (Use Present Value Table)TreeTop Inc. bonds was issued on Oct 15th, 2010. The bonds have a coupon rate of 6.2%, with interest paid annually. The par value of the bonds is $1,000 and the maturity is Oct 15th, 2042. If the market price of one contract of TreeTop bond on Oct 15th, 2020 is $1,105, what is the annual interest rate to be earned by an investor who bought it on Oct 15th, 2020 at the said market price and plan to hold on to the bond till maturity? Round to the 0.01%, i.e., two decimal places. Enter your answer in the form of a percentage. For example, if your answer is "12.34%", enter "12.34".GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors cash interest payments semi annually (every six months). The market rate for this bond is 6% and the coupon rate is 5% What is the present value of the coupon payments (Use Present Value Table)