The company issues 9% 5-year bonds with a total face amount of $1,000,000 with interest paid...

 

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The company issues 9% 5-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 8.8%. % PV 8.80% 0.65593 0.64993 0.65012 0.64393 n 5 5 10 10 9.00% 4.40% 4.50% PVA 3.9099 3.8897 7.9518 7.9127 ROUND ANSWERS TO NEAREST DOLLAR 1. What is the issue price of the bond? $ 2. What was the amount of the premium or discount: $ 3. What is the interest expense for the first interest payment? $ 4. What is the bond liability after the first interest payment? $_ 5. What is the interest expense for the second interest payment? $ The company issues 9% 5-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 8.8%. % PV 8.80% 0.65593 0.64993 0.65012 0.64393 n 5 5 10 10 9.00% 4.40% 4.50% PVA 3.9099 3.8897 7.9518 7.9127 ROUND ANSWERS TO NEAREST DOLLAR 1. What is the issue price of the bond? $ 2. What was the amount of the premium or discount: $ 3. What is the interest expense for the first interest payment? $ 4. What is the bond liability after the first interest payment? $_ 5. What is the interest expense for the second interest payment? $

Answer rating: 100% (QA)

Issue price of the bond PV of all future cashflows discounted ... View the full answer