1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PSYCHO15rus [73]
3 years ago
6

A company issues 9%, 5-year bonds with a par value of $140,000 on January 1 at a price of $145,678, when the market rate of inte

rest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:
Business
1 answer:
deff fn [24]3 years ago
4 0

Answer:

Semi annual interest payment = $6300

Explanation:

The interest payment of bond is calculated based on the coupon rate of the bond. The coupon rate is the interest rate carried by the bond. This rate can be different from the market interest rate and bond's yield to maturity. The interest payment is calculated by multiplying the coupon rate by the face value of the bond.

Annual interest payment = Coupon rate * Par value

For a semi annual bond, we calculate the interest payment in the same way as the annual bond. However, we just have to adjust the coupon rate for the semi annual period. We multiply the coupon rate by 6/12 as it is a semi annual payment.

Semi annual interest payment = Coupon rate * 6/12 *  Par Value

Semi annual interest payment = 0.09 * 6/12 * 140000

Semi annual interest payment = $6300

You might be interested in
Camden Biotechnology began operations in September 2013. The following selected transactions relate to liabilities of the compan
USPshnik [31]

Answer:

Cash (Dr.) $12,000,000

Short term notes payable (Cr.) $12,000,000

Cash (Dr.) $2,600

Liability of refundable (Cr.) $2,600

Interest Expense (Dr.) $250,000

Interest Payable (Cr.) $250,000

Accounts receivable (Dr.) $4,100,000

Sales Revenue (Cr.) $3,977,000

Sales Tax Payable (Cr.) $123,000

Cash (Dr.) $10,000,000

Bond Payable (Cr.) $10,000,000

Explanation:

<u>Liability Schedule 2013,</u>

Accounts Payable $252,000

Current Portion of notes payable $2,000,000

Interest Payable $250,000

Sales tax Payable $123,000

Liability for refundable deposit $2,600

Total Current Liability $2,627,600

4 0
3 years ago
Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the
Zolol [24]

Answer:

In the books of Eisler Corporation :

Cash ( 2,000 x 1,000 x 101 %) A/c   Dr.  2,020,000

Discount on Bonds Payable A/c     Dr.   $59,216

To Bonds Payable                                                           2,000,000

To Paid-in Capital : Stock Warrants                                 79,216

Workings:

Bond issue proceeds proportionately allocated to bonds:

=2,020,000\times\frac{980}{980+40}

= 1,940,784.31

Discount on bonds payable = $ 2,000,000 - $1,940,784  

                                              = $59,216

4 0
3 years ago
As a real estate speculator, you are planning and able to buy a house that costs $200,000, borrowing the full amount with no mon
Ivanshal [37]

Answer: $4,000

Explanation:

The house is worth $200,000 in the present when you bought it.

When you sell it in a year, it would have appreciated by 2% over the capital that you invested as per the expected increase in Real Estate rates.

Your capital gain therefore is that 2%;

= 2% * 200,000

= $4,000

7 0
3 years ago
Why is does school last so long?
shusha [124]
WE need School to be smart, if without school, no one would be able to become great people, look at the actors, famous people, where did they start off at??
Of course, school!!
another thing:
why does it last so long like 7 hours?
well, simple:
what would you do without school at home? i doubt you would be doing school work, or something related. 
you'd watch TV, games, etc. 
TO keep our minds concentrated on our life of educating, we keep working our brains out in school. 
Hope this helped !=)
7 0
3 years ago
Read 2 more answers
Changing the speed and tone of your depending on the type of example you are giving can affect how listeners respond to your spe
steposvetlana [31]

Answer: voice

Explanation:

3 0
2 years ago
Other questions:
  • Better Beverages purchased some fixed assets classified as five-year property for MACRS. The assets cost $108,000. The MACRS rat
    8·1 answer
  • Most destinations can afford to be one-season operations.<br><br> true or false
    15·2 answers
  • On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common stock at $50
    7·1 answer
  • Sunland Company is considering two capital investment proposals. Estimates regarding each project are provided below. Project So
    14·1 answer
  • sysyster corp. has an ROE of 16 percent and a payout ratio of 24 percent. what is its sustainable growth rate?
    6·1 answer
  • As a financial analyst, you are tasked with evaluating a capital budgeting project. You were instructed to use the IRR method an
    13·1 answer
  • I have a 781 credit score what can i get
    10·1 answer
  • Consider the following per unit data for Jennifer Company, a seller of tables and chairs: What is the weighted-average unit cont
    9·1 answer
  • The marketing challenge of making potential customers aware of the product's existence and its features, benefits, and uses is p
    14·1 answer
  • What is marketing mix? explain 4 P's of marketing mix.​
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!