Home / Questions / What is the annual market interest rate on the bonds
What is the annual market interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six month rate.)
a.4%.
b.3.5%.
c.7%.
d.8%.
107. THA buys back the bonds for $196,000 immediately after the interest payment on 12/31/2015 and retires them. What gain or loss, if any, would THA record on this date?
a.No gain or loss.
b.$370 gain.
c.$4,000 gain.
d.$1,242 loss.
Use the following information to answer the next 6 questions:
X2 issued callable bonds on January 1, 2015. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity:
|
Date |
Cash Paid |
Interest Expense |
Decrease in Carrying Value |
Carrying Value |
|
1/1/2015 |
|
|
|
$104,212 |
|
12/31/2015 |
$7,000 |
$6,253 |
$747 |
103,465 |
|
12/31/2016 |
7,000 |
6,208 |
792 |
102,673 |
|
12/31/2017 |
7,000 |
6,160 |
840 |
101,833 |
|
12/31/2018 |
7,000 |
6,110 |
890 |
100,943 |
|
12/31/2019 |
7,000 |
6,057 |
943 |
100,000 |
108. X2 issued the bonds:
a.At par.
b.At a premium.
c.At a discount.
d.Cannot be determined from the given information.
109. X2 issued the bonds for:
a.$100,000.
b.$107,000.
c.$104,212.
d.Cannot be determined from the given information.
110. The X2 bonds have a life of:
a.3 years.
b.4 years.
c.5 years.
d.Cannot be determined from the given information.
111.What is the annual stated interest rate on the bonds?
a.3%.
b.3.5%.
c.6%.
d.7%.
112. What is the annual market interest rate on the bonds?
a.3%.
b.3.5%.
c.6%.
d.7%.
113. X2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2016 and retires them. What gain or loss, if any, would X2 record on this date?
a.No gain or loss.
b.$3,000 gain.
c.$1,202 loss.
d.$327 loss
Jan 27 2020 View more View Less
Find an equation for the plane consisting of all points that equidistant from the points and
Jul 22 2021Evaluate where C is the curve [Hint: Observe that C lies on the surface z=2xy]
Jun 18 2021On January 1, 2015, RA Company issued for $537,616 its 20-year, 13% bonds that have a maturity value of $500,000 and pay interest semiannually on January 1 and July 1. R...
Jul 04 2021Five liters of liquid n-hexane and 4 liters of liquid n-heptanes are mixed and burned with 4000 gram- moles of air. Not all of the hydrocarbons are burned in the furnace,...
Jul 19 2020Management's example or modeling is of little importance to the control environment.TrueFalse
Aug 12 2021A corporate treasurer is typically is not responsible for cash management, credit management, and raising capital.Select one:TrueFalse
Apr 16 2021Diet and Exercise Program In a study of the Kingman diet and exercise program, 40 subjects lost an average of 22 pounds. There is about a 1% chance of getting such res...
May 18 2021Suppose that drug addicts pay for their addiction by stealing: So the higher the total revenue of the illegal drug industry, the higher the amount of theft. If a governme...
Mar 29 2020Using the CPI table below, what is the base year?* Year France 2001 92.5 2002 94.3 2003 96.2 2004 98.3 2005 100.0 2006 101.7 2007 103.2 2008 106.1 2009 106.2 2010 | 107.8
Apr 10 2021Investment professionals who take companies public, arrange mergers and acquisitions, and participate in municipal bond issues are:registered representativessecurity anal...
Dec 04 2019