Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 6R
Use the worksheet to compute the
Bond issue price $ _____
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Students have asked these similar questions
From page 9-2 of the VLN, how do you determine the annuity cash flow (the bond interest payment) from an annual bond?
Group of answer choices
A. Bond payable x stated rate
B. Bond liability x stated rate
C. Bond payable x market rate
D. Bond liability x market rate
Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your answers to the nearest cent.)
A bond is currently selling for $980. This is a _____ bond which will ultimately experience a capital _____.
Premium; gain
Premium; loss
Discount; gain
Discount; loss
Chapter 11 Solutions
Excel Applications for Accounting Principles
Ch. 11 - The University Club recently issued 1,500,000 of...Ch. 11 - The bond pricing formula utilizes the NPV (Net...Ch. 11 - Prob. 3RCh. 11 - Prob. 4RCh. 11 - Use the worksheet to compute the bond issue price...Ch. 11 - Use the worksheet to compute the bond issue price...Ch. 11 - Prob. 7RCh. 11 - a. Reset the Data Section to its initial values....
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Use the worksheet to compute the bond issue price and amortization schedules if the effective interest rate is 8.2%. Save the file as BONDS5. Print the worksheet when done. Also, repeat requirement 4 in the space provided below for this bond.arrow_forwardYou find a bond quote online listing a bond's price as "91". The bond's current price is $_______.arrow_forwardSelect the correct answer to each of the following statements. A. Increase B. Decrease C. Remain Constant 1. The amount of interest expense will _______ each payment period for a bond issued at a discount. 2. When a bond is issued at a discount, the cash interest payment will _________ over the life of the bond. 3. When a bond is issued at a premium, the carrying value of the bond will _______ over the life of the bond.arrow_forward
- Calculate the accured interest in dollars, and the total proceeds in dollars of the bond sale round your answer to the nearest cent?arrow_forwardCalculate the Accrued interest in dollars and the total purchase price in dollars of the Bond purchase. Round your answers to the nearest cent.arrow_forwardFrom page 9-3 of the VLN, when determining the issue price of a bond, which interest rate would you use? Group of answer choices A. Stated rate B. Market rate C. Nominal rate D. Compound ratearrow_forward
- Calculate the value of each bond and discuss whether it sells at par, discount, or premium. (Annual interest rate) O A. Bond Bond Value A B C O B. Bond A B C O C. Bond A B с O D. Bond A B C $1,149.39 Discount $1,000.00 Par $85.60 Premium Bond Value Sells at par/discount/premium Bond Value $1,149.39 Premium $1,000.00 Par $85.60 Discount Sells at par/discount/premium Bond Value Sells at par/discount/premium $1,149.39 Premium $1,000.00 Par $85.60 Premium Sells at par/discount/premium $1,049.39 Premium $1,100.00 Premium $85.60 Discount Bond Par value Coupon interest Years to rate maturity JA B IC $1000 14% $1000 18% $100 10% 120 16 18 Required return 12% 8% 13%arrow_forwardBOND PRICING #2 for Borrowing Money Inc Borrowing Money Inc (BMI) issues a bond on January 1, 2021 with a face valuc of $400,000. The bond has an 7 year maturity date and requires SEMI ANNUAL interest paymerits. The bond's stated interest rate is 3% and the current market interest rate is 2%. Hint: remember to set your expectations PV tables will be needed. Do not round your PVIF, but you may round answers to whole dollars. Prepare the journal entry (in proper form) at issuance of this bond for BMI. Include your journal for grading on your PDF upload. Your multiple step calculations must also be shown To get a preliminary idea of how you did you may enter your calculated amount for cash received at Issuancearrow_forwardCalculate the accrued interest(in$) and the total purchase price(in$) of the bond, purchase round your answer to the nearest cent? (If you can’t see the market price on my paper it’s 79.75)arrow_forward
- Listen Assume that there is a bond that pays $20.00 at the and of year 2, and $105.00 at the end of year 7. It sells at a total =$(20.00+105.00). The Macauley duration of the bond is? Answer with two digits decimal accuracy. Blank Excel Worksheet Your Answerarrow_forwardDescribe a way to estimate the inflation premium(IP) for a t-year bond.arrow_forwardWhat is assumed the be the face value aka par value aka principal aka loan amount of a bond? It's also assumed to be a bond's FV. 10% $0 $100 $1,000arrow_forward
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