Dufner Co. issued 17-year bonds one year ago at a coupon rate of 73 percent. Thebonds make semiannual payments.If the YTM on these bonds is 5.3 percent, what is the current dollar price assuming a pevalue of $1,000? (Do not round intermediate calculations and round your answer todecimal places, e.g., 32.16.)Parkway Void Co. issued 13-year bonds two years ago at a coupon rate of 9.3 percent.The bonds make semiannual payments.If these bonds currently sell for 106 percent of par value, what is the YTM? (Do notround intermediate calculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)

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Answered: Dufner Co. issued 17-year bonds one…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.
Dufner Co. issued 17-year bonds one year ago at a coupon rate of 7.8 percent. The bonds make semiannual payments. A. If the YTM on these bonds is 5.5 percent, what is the current dollar price assuming a par value of $1,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Parkway Void Co. issued 16-year bonds two years ago at a coupon rate of 9.5 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Dufner Co. issued 16-year bonds one year ago at a coupon rate of 7.2 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.5 percent, what is the current dollar price assuming a par value of $1,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price
Wesimann Co. issued 11-year bonds a year ago at a coupon rate of 8.3 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.6 percent, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.6 percent. The bonds make semiannual payments. If these bonds currently sell for 106 percent of par value, what is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM
Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 6.6 percent. The bonds make semiannual payments. If these bonds currently sell for 115 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
West Company issued 10-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 5.3 percent, what is the current bond price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
West Corp. issued 15-year bonds two years ago at a coupon rate of 8.8 percent. The bonds make semiannual payments. If these bonds currently sell for 109 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000. 10 years to maturity, and a coupon rate of 6.8 percent paid annually. If the yield to maturity is 7.9 percent, what is the current price of the bond? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current price
On July 1, Somers Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12 %. The bonds paid interest semi-annually. A. Assuming the bonds sold at 59.55, what was the selling price of the bonds? B. Explain why the cash received from selling this bond is different from the $200,000 face value of the bond. Investors can earn a higher rate ✓ in other similar bonds so the bond sells at a discount

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