Business, 04.04.2020 03:57 alphonsobedford7534

On January 1 of this year, Nowell Company issued bonds with a face value of $140,000 and a coupon rate of 7.5 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 7.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)1. What was the issue price on January 1 of this year?
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
4. What is the book value of the bonds on December 31 of this year? December 31 of next year?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 10:30

Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?

Answers: 2

Answer

Business, 22.06.2019 19:10

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position

Answers: 3

Answer

Business, 22.06.2019 23:40

Gif the federal reserve did not regulate fiscal policy, monitor banks and provide services for banks, what would most likely be the economic conditions to transact business in the u.s.? the economy would primarily be based on a barter system rather than a fiat system. there would be no discrimination in lending by local banks. the economy would be less efficient and transactions most likely more costly.

Answers: 1

Answer

Business, 23.06.2019 01:30

What is the minimum educational requirement for a pediatric psychopharmacologist? a. md b. phd c. bachelors in medicine d. masters in medicine e. psyd

Answers: 3

Answer

You know the right answer?

On January 1 of this year, Nowell Company issued bonds with a face value of $140,000 and a coupon ra...

Questions