Idaho Company issued 15-year, $100,000 bonds with a stated rate of interest of 8%, compounded quarterly. The
Question:
Idaho Company issued 15-year, $100,000 bonds with a stated rate of interest of 8%, compounded quarterly. The effective interest rate demanded by investors for bonds of this level of risk is also 8%. Calculate the issuance price of the bond (e.g., the total present value).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
Quarterly interest payments 2000 Present value of an annuity of 60 payments of ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Question Posted:
Students also viewed these Accounting questions
-
Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies balance sheets as of December 31, 20X4, were as follows: Assets Cash. Accounts Receivable....
-
A bond carries a stated rate of interest of 6% and par of $1,000. It matures in 20 years. It is sold at 83 (83% of $1,000, or $830). a. Under normal conditions, why would the bond sell at less than...
-
The current market rate of interest is 8 percent. At that rate of interest, businesses borrow $500 billion per year for investment and consumers borrow $100 billion per year to finance purchases. The...
-
The drawing shows a jet engine suspended beneath the wing of an airplane. The weight W of the engine is 10 200 N and acts as shown in the drawing. In flight the engine produces a thrust T of 62 300 N...
-
Which of the following is a problem that Anglo American PLC is facing as it tries to adopt an aggressive strategy against HIV/AIDS?
-
Explore several sites related to healthcare (e.g., WebMD.com, who.int). Find issues related to AI and privacy. Write a report on how these sites suggest improving privacy.
-
Solve the following initial value problem using Laplace transform: (a) \[\frac{d y}{d t}=-y+e^{-3 t}, \quad y(0)=2\] (b) \[\frac{d y}{d t}+11 y=3, \quad y(0)=-2\] (c) \[\frac{d y}{d t}+2 y=2 e^{7 t},...
-
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,000 per tour day,...
-
On September 1 , 2 0 2 7 , Betty DeRose, Inc. received $ 5 4 , 0 0 0 cash from a customer as payment for services that will be performed over the next 3 0 months. On May 3 1 , 2 0 2 8 , Betty DeRose,...
-
Beth acquired only one tract of land seven years ago as an investment. In order to sell the land at a higher price, she decides to subdivide it into 20 lots. She pays for improvements such as...
-
Which one of the following statements is false? a. Debentures are bonds that have no underlying assets pledged as collateral to guarantee their payment. b. Serial bonds mature in one single sum on a...
-
Forkman Company issued five-year, $25,000 bonds with a stated rate of interest of 8%, compounded semiannually. The effective interest rate demanded by investors for bonds of this level of risk is...
-
Kenneth Kinney and Kathleen Gallagher were in a personal relationship during which they agreed to purchase a house. While the couple did buy the house together, Kinney's name was not on the deed...
-
1. Solve each equation for x, where 0x & a) sin x-= 0 b) cosx-3 cosx+2=0
-
Evaluate f(x)=4e-x-5 +3 for x = -8. (Round your answer to four decimal places, if necessary.) Provide your answer below:
-
3. Using power method, calculate the largest eigen value and corresponding eigen [201] vector for the matrix, B = 0 2 0 Carry out 5 iterations with initial 1 0 2 approximation correct to two decimal...
-
Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. Schedule of...
-
Cash account balance During the month, Bavarian Auto Co. received $489,650 in cash and paid out $413,250 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $76,400...
-
Solar Electronics has enjoyed tremendous sales growth during the last 10 years. However, even though sales have steadily increased, the company's CEO, Dana Byrnes, is concerned about certain aspects...
-
A stock has had returns of 8 percent, 26 percent, 14 percent, 17 percent, 31 percent, and 1 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
-
Determine the impedance corresponding to apparent power 3500 VA, power factor 0.76 lagging, and effective current 18.0 A.
-
Compute the value of C for the diagram, assuming a 10% interest rate. 300 200 100 -8
-
If i = 12%, compute G in the diagram. 6G 5G 3G 2G 9. 500 500
-
Compute the value of D in the diagram. 300 200 100 -6 -7 i- 10% 0-
-
By carrying out the audit of the financial statements in the Property, Plant and Equipment area, we were able to determine the reasonableness of the balance of the vehicle depreciation account. The...
-
The link between service delivery and external communications has a profound impact on customer perceptions of service quality. If you were to execute a service blueprint for dairy queen store and...
-
The city of marlohaven has a december 31 fiscal year end, during 20x5 marlohaven levied $1000000 in property taxes. the following details are expected collection of marlohaven's general fund property...
Study smarter with the SolutionInn App