Determine the present value of 10-year bonds payable with the face value of $ 90 000 and

Fantastic news! We've Found the answer you've been seeking!

Question:

Determine the present value of 10-year bonds payable with the face value of $ 90 000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance

Requirement 1-When the market rate of interest is 12% annually- FIND PRESENT VALUE

Requirement 2.same bonds payable as in requirement? 1, but the market interest rate is 16?%.

-When the market rate of interest is 16% annually- FIND PRESENT VALUE

Requirement 3. Same bonds payable as in requirement? 1, but the market interest rate is10?%.

When market rate of interest is 10% annually- FIND PRESENT VALUE

Related Book For answer-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

See More Books

Posted Date: Mar 12, 2024 06:16 AM

See More Questions

Interest rates determine the present value of future amounts. (Round all numbers to the nearest whole dollar.) Requirements 1. Determine the present value of seven- year bonds payable with face value...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Ghana Water Company Limited (GWCL) Profile Ghana Water Company Limited (GWCL) is a utility company, fully owned by the State. The company is responsible for potable water supply to all urban...
Compare and contrast how bad debt expense is determined for financial accounting purposes and how the deduction for bad debts is determined for accrual-method taxpayers. How do cash-method taxpayer's...
Write a paper on security analyst which includes introduction and methodology, for research.
Purina entered in a contract with the defendant to sell the defendant piglets, known as weanlingsbaby pigs that have been weaned. It is uncontested that the buyer breached and that Purina is entitled...
The trial balances shown on page 208 are before and after adjustment for Amit Company at the end of its fiscal year. InstructionsPrepare the adjusting entries that weremade. AMIT COMPANY Trial...
Anika who lives in Vancouver, purchased a piece of equipment from Australia for A$45,400. He was charged 19% duty, 5% GST, and 7% PST to import it. Calculate the total cost of the equipment. Assume...
8. The base of a solid is the region bounded by the graphs of y = , x = 2, and y = 0. a. Find the volume V of the solid if slices made perpendicular to the y-axis are squares. b. Find the volume V of...
In Exercises 23.2023.21, you reimplemented recursive sorting algorithms using the Fork/Join Framework. Why might you not want to invest the effort into applying this technique to a recursive binary...
Add animation to Program 8.1, such that either the objects or the light (or both) move around on their ownsuch as one revolving around the other. The shadow effects will be more pronounced if you add...
Modify Program 2.6 so that it calculates the amount of movement for the triangle based on elapsed time, rather than a constant amount as it is currently implemented. One approach for this is to get...
Examine the difficulty of adding a proposed swap rs, rt instruction to MIPS. Interpretation: Reg[rt] = Reg[rs]; Reg[rs] = Reg[rt] 1. Which new functional blocks (if any) do we need for this...
Estimate the thermal conductivity of a gas mixture containing 40 mol% ammonia and 60 mol% N2 at 400 K and 1 atm absolute pressure.
In free space, E(x, t) = 100 sin (t +x )ay V/m. Find the average power crossing a circular area of radius 3 m in the plane x =const.
Find i 0 (t) for t > 0 in the circuit in Fig. 16.72 . 2 + Vo 1 7.5e-2t u(t) V ( +) 4.5[1 u(t)]V 0.5v. 1H
Watney Inc. purchased $10,000 of 6% Hamel bonds at par on July 1, 2013. The bonds pay interest semiannually. Watney intends to hold the Hamel bonds for the life of the bonds. During the second half...
Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians Leasing purchased a lithotripter for $3,000,000 and leased it to...
On March 1, 2013, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2013, for $99 million (plus accrued interest). The bonds mature on December 31, 2032, and pay interest...
Galinha-Esquina SA grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2022 is as follows: Joint costs of production in July...
What is a joint cost?
Terms a Split-off point b Joint cost c Separable cost d By-product e Joint product f Product Definitions 1 Product with low sales value compared with the sales value of the main or joint product(s)....

Determine the present value of 10-year bonds payable with the face value of $ 90 000 and

Question:

Expert Answer:

Requirement 1 When the market rate of interest is 12 annually In this case since the stated interest ... View the full answer

Intermediate accounting

Students also viewed these accounting questions