Question: Suppose that on December 3 1 , 2 0 2 2 , Netflix issued a bond with the following terms Face Value $ 2 ,
Suppose that on December Netflix issued a bond with the following terms
Face Value $
Maturity years
Coupon Rate annualized
Compounding Period Semiannual
Market interest rate annualized
Answer the following questions for this bond
What are the semiannual coupon payments of the bond?
What will the principal payment of the bond be at the end of the years?
What is the present value of the coupon payments, rounded to the nearest dollar?
What is the present value of the principal payment, rounded to the nearest dollar?
What is the issue price of the bond both the coupon payments and the principal payment rounded to the nearest dollar?
Is there a premium on the bonds payable or a discount on the bonds payable at the time of issuance?
What is the amount of premium or discount on bonds payable at the time of issuance?
What is the interest expense for the first coupon payment? How much is the amortization of the Premium on Bonds PayableDiscount on Bonds Payable for the first coupon payment? ie how much does the PremiumDiscount decrease for the first coupon payment?
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