| | 8.78% | | 10.73% | | 11.71% | | 9.76% | | 4.88% | Redesigned Computers has 10 percent coupon bonds outstanding with a current market price of $910.00. The yield to maturity is 11.34 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures? | 12 years | | 13 years | | 15 years | | 21 years | | 14 years
Question 14 Which of the following bank accounts has the highest effective annual return? Question 15 0 out of 2 points Which of the following statements is CORRECT? Question 16 Which of the following statements is CORRECT? Question 17 A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000).
15. Question: : (TCO D) On January 1, Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium.
Each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $47. The firm’s straight bonds yield 10%. Each warrant is expected to have a market value of $2.00 given that the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par? Question 24 Europa Corporation is financing an ongoing construction project.
2. Norton Co., a U.S. corporation, sold inventory on December 1, 2011, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: For what amount should Sales be credited on December 1? A. $5,500.
Mid-term 1. (TCO A, B, C) Which type of corporate information is not available to investors? (Points : 3) Dividend history Forecast of cash needs for the upcoming year Cash provided by investing activities Beginning cash balance 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called: (Points : 3) accounts payable. notes receivable.
The depreciation is based on the car’s life not of the lease agreement. Question # 2 In item #4 we assumed that the $100,000 bond with a 5% rate involves a 15 year-end annual interest payments of $5,000 (100,000*.05). The payments is assumed to be annual, at year end. In appendix B the value of 8% for 15 years is 8.559. so the present value of $5,000 is $42,795, for interest payments $100,000*.315 which is $31,500. In total it will be $74,295; since the investors paid $80,000 the yield rate is less than 8%.
On July 1, 2012, Herzog Mining lends cash and accepts a $9,000 note receivable that offers 10% interest and is due in nine months. Herzog reported its financial statements at the end of fiscal year on December 31, 2012 (An adjusting entry for interest revenue was recorded). How would Herzog record the transaction on April 1, 2013, when the borrower pays Herzog the correct amount owed? A. B. C. D. 2 4.
(TCO A) On March 1, 2010, Ruiz Corporation issued $800,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2030. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2010, the fair market value of Ruiz's common stock was $40 per share and the fair market value of the warrants was $2.00. What amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants?
Bond computations: Straight-line amortization Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow. • Case A—The bonds are issued at 100. • Case B—The bonds are issued at 96.