Q: Required For each of the following situations, calculate the amount of bond discount or premium, if…
A: Formulas used; If Issue price is greater than face value then the resultant value will be premium.…
Q: Bond prices depend on the market rate of interest, stated rate and time Compute the price of the…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: If the bonds payable account has a balance of $100,000 and the premium on bonds payable account has…
A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…
Q: Evaluate the following statements: S1 The proceeds of a bond with a face amount of P100,000,000…
A: Proceeds of a bond with a face amount of P100,000,000 which sells at 102 = P100,000,000 X 102/100…
Q: What is the issue price of a $2,000 bond sold at 981⁄4? What is the issue price of a $6,000 bond…
A: Issue price of a $2,000 bond = $2,000 x 98.25% = $1,965
Q: True or false. Corporate bonds are short-term debt usually issued in of $1,000 increments.
A: Introduction: Short term Debt: The debt to be repaid within twelve months time period called as…
Q: You purchase a $10,000 bond with a bond rate of 6% per year payable semiannually for 2 years. You…
A: Bonds are financial instruments which provide fixed returns to its holders. Bonds actually have a…
Q: a. Assume that the market interest rates were slightly higher than 9% when the bonds were sold.…
A: Bond is a fixed income security which is issued by the company to raise money. Company needs to pay…
Q: Determine the total interest expense for Year 1. $ 4. Will the bond proceeds always be less than the…
A: Discount on bond - It is the difference between the face value of a bond and the reduced price at…
Q: Consider the following three bond quotes: a Treasury bond quoted at 103:17, a corporate bond quoted…
A: Bonds are usually quoted as a percentage of its par value. Thus, to find the price of the bond…
Q: Bonds Payable has a balance of $867,000 and Premium on Bonds Payable has a balance of $9,537. If the…
A: Assumed Bonds has a face value = 100 Bonds Payable has a balance = 867000 Number of Bonds =…
Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…
A: 1.a
Q: A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to…
A: Bonds: Bonds are the financial debt instruments issued by the corporations to raise the capital for…
Q: What is the issue price of a $2,000 bond sold at 981/4? What is the issue price of a $6,000 bond…
A: When bonds are sold at price lower than the par value, they are said to be issued at a discount.…
Q: On 6/30/12, a company paid $106,000 to retire a bond before maturity. The company recorded a $6,000…
A: Bonds means the kind of instrument which acknowledges the debt due from one company to bond holder…
Q: Bonds Payable has a balance of $962,000 and Premium on Bonds Payable has a balance of $10,582. If…
A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…
Q: A $288,000 bond was redeemed at 98 when the carrying amount of the bond was $280,800. The entry to…
A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…
Q: A corporate bond, Aaa credit, with a par value of $1000 is quoted at 94 3/8. What is the cost of the…
A: Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at…
Q: On 6/30/12, a company recorded a journal entry for the coupon payment on its bond. As part of the…
A: SOLUTION- COUPON PAYMENT - IT IS THE ANNUAL INTEREST PAYMENT PAID TO A BOND HOLDER BY THE BOND…
Q: 3. If bonds are issued at 101.25, this means that a.a $1,000 bond sold for $1,012.50. b.the bonds…
A: If a bond is issued more than 100, then it is called as premium. This bond is issued at premium,…
Q: company has bond outstanding with a par value of 100,000. the unamortized discount on these bond is…
A: When bonds are retired then resulting gain or loss will be shown in profit or loss account
Q: If bonds of $1,000,000 with unamortized discount of $10,000 are redeemed at 98, the gain on…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $12,500. If…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: What is the correct answer? The total interest paid on $46,000, ten-year, 6 percent bonds that are…
A: The Interest amount of the bond to be paid to the holder is calculated on the face value of the…
Q: Find the total proceeds ( in $ ) from the sale of 20 bonds with a coupon rate of 8.75 and a current…
A: Since face value is not given.So, Assuming face value = $ 1,000 Here nothing given about…
Q: answer the questions
A: Hi there, Thanks for posting the questions. But as per our honor code, we should answer the first…
Q: Bonds Payable has a balance of $987,000 and Premium on Bonds Payable has a balance of $10,857. If…
A: If the bond is redeemed at 102, then its redeemed at a premium of 2% from its face value.
Q: Consider a bank with the following balance sheet (M means million): Assets Value Duration of the…
A: The total equity is
Q: A $291,000 bond was redeemed at 98 when the carrying amount of the bond was $286,635. What amount of…
A: Bonds are kind of loan taken which is paid after certain period of time. Face value of bonds…
Q: Consider the following three bond quotes; a Treasury note quoted at 87.25, and a corporate bond…
A: A security that is issued by the company in order to meet its financial position, where the fixed…
Q: Jordan paid a full price of $1,059.04 each for 77 bonds. The purchase was between coupon dates, and…
A: Full price = $1059.04 Accrued interest = $11.45
Q: A. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? 24 B. Were they…
A: Bonds: Bonds are defined as debt instruments which are usually issued by the company that borrows…
Q: . When is interest expense more than interest paid? a. when bonds are sold at a premium b. when…
A: When a bond's coupon rate is higher than the market value, it sells at a premium. When the coupon…
Q: Listed below are terms and definitions associated with bonds. Match (by letter) the bond terms with…
A: Generally, Bonds are defined as the fixed income on investments which represents the loan…
Q: Bonds Payable has a balance of $909,000 and Premium on Bonds Payable has a balance of $9,999. If the…
A: Option d is the answer.
Q: Consider the following three bond quotes; a Treasury note quoted at 87.25, and a corporate bond…
A: Bond Quote refers to the trading price for floating bond shown as percentage of its respective face…
Q: Rank the following bonds in order from lowest credit risk to highest risk all with the same time to…
A: Credit Risk Ranking can be done based on the yield. The more the Yield the more credit risk would be…
Q: A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,000. The journal…
A: Discount on Bonds Payable = Face value of bonds - Carrying value of bonds = $300,000 - $292,000 =…
Q: In c)’s scenario, to maintain the equity to asset ratio at 40% which is required by the regulation,…
A: By raising the interest rates by 1% percent In the current situation Let’s Equity to Asset ratio…
Q: If the bonds payable account has a balance of $900,000 and the discount on bonds payable account has…
A: The correct option is A.$828,000 Please see the next step for the solution
Q: 1. Prepare the journal entry to record the sale of the bonds at par. Record issuance of bonds at par…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
The face or par
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- According to the theory, premium bonds, discount bonds, and face value bonds at the expiry date will have a value of $1,000. Why is the value is $1,000 at the expiring day? Explain.Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your answers to the nearest cent.)Assume all bonds have par or face value of 1,000
- What is assumed the be the face value aka par value aka principal aka loan amount of a bond? It's also assumed to be a bond's FV. 10% $0 $100 $1,000Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) \table[[,, \table[[Cash], [Proceeds]], \table[[Discount or], [Premium]]], [a., Pear, Inc. issued $190,000 of 10-year,8 percent bonds at 103., Premium,], [b., Apple, Inc. issued $92,000 of five-year, 12 percent bonds at 99.,, Discount], [c., Cherry Co. issued $196,000 of five-year, 6 percent bonds at 1031/4., Premium,], [d., Grape, Inc. issued $39,000 of four-year, 8 percent bonds at 99.00., Discount,]] Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) a.…6. Bonds that mature in installments are called term bonds. 7. A conversion feature may be added to bonds to make them more attractive to bond buyers. 8. The rate used to determine the amount of cash interest the borrower pays is called the stated rate. 9. Bond prices are usually quoted as a percentage of the face value of the bond. 10. The present value of a bond is the value at which it should sell in the marketplace. Instructions Identify each statement as true or false. If false, indicate how to correct the statement.
- 13. An investor purchases bonds with a face value of $100,000. Payment for thebonds includes (a) a premium (b) accrued interest rate and (c) brokeragefees. How would each of these charges be recorded and what dispositionwould ultimately be made of each of these charges??Assume all bonds have a face or par value of 1,000 unless told otherwisePlease see attached. Definitions: Coupon is the regular interest payment of a bond. Coupon rate is the interest rate for the bond coupons, expressed in annual percentage terms. Par value is the principal amount to be repaid at the maturity of the bond. Yield to maturity (YTM) is the return the bond holder receives on the bond if held to maturity. Maturity date is the expiration date of the bond on which the final interest payment is made as well as the principal repayment.