Answer:
I think maybe B?
Explanation:
I am not sure so I think its b
Answer:
$912.68
Explanation:
Particulars Time PVF at 9.9% Amount Present Value
Cash Flows (Interest) 1.00 0.9099 79.00 71.88
Cash Flows (Interest) 2.00 0.8280 79.00 65.41
Cash Flows (Interest) 3.00 0.7534 79.00 59.52
Cash Flows (Interest) 4.00 0.6855 79.00 54.15
Cash Flows (Interest) 5.00 0.6238 79.00 49.28
Cash Flows (Interest) 6.00 0.5676 79.00 44.84
Cash flows (Maturity) 6.00 0.5676 1,000.00 <u>567.60</u>
Intrinsic Value of Bond or Current Bond Price $<u>912.68</u>
Thus, the Current bond price is $912.68
Answer:
$700
Explanation:
If a bond is issued at a lower price than the face value of the bond, then the bond is issued on the discount. This discount is amortized over the bond's life. This amortization will be expensed as Interest Expense.
Discount = Face value - Issuance price = $15,000 - $14,700 = $300
Bond's Life = 6 years
Amortization of discount = $300 / 6 = $50 annually = $25 semiannually
Coupon Payment = Face Value x coupon Rate = $15,000 x 9% = $1.350 annually = $675 semiannually
Interest Expense Includes both the coupon payment and discount amortization for the period.
Interest Expense = $675 + $25 = $700
Answer:
12%
Explanation:
The discount rate will be PV/FV -1
i.e., i = (Fv/pv )-1
i= (280/250) - 1
i = 1.12-1
i=12%