! Problem 9-1A Calculate the issue price of a bond and prepare amortization sche
ID: 2705037 • Letter: #
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!Problem 9-1A Calculate the issue price of a bond and prepare amortization schedules [LO3, 4]
Coney Island Entertainment issues $1,000,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.
Problem 9-1A Part 1
The market interest rate is 6% and the bonds issue at face amount. (Input all amounts as positive values. Do not round PV factors. Leave no cells blank - be certain to enter "0" wherever required. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Problem 9-1A Part 2
The market interest rate is 7% and the bonds issue at a discount. (Input all amounts as positive values. Do not round PV factors. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Problem 9-1A Part 3
The market interest rate is 5% and the bonds issue at a premium. (Input all amounts as positive values. Do not round PV factors. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Coney Island Entertainment issues $1,000,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.
Calculate the issue price of a bond and prepare amortization schedules [LO3, 4] [The following information applies to the questions displayed below.] The market interest rate is 6% and the bonds issue at face amount. (Input all amounts as positive values. Do not round PV factors. Leave no cells blank - be certain to enter "0" wherever required. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) The market interest rate is 7% and the bonds issue at a discount. (Input all amounts as positive values. Do not round PV factors. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) The market interest rate is 5% and the bonds issue at a premium. (Input all amounts as positive values. Do not round PV factors. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Explanation / Answer
It is due in 15 years, but they collect interest every half year so there are 15 x2 = 30 collection time
and its 6% annually so you gotta divide by 2. 3% semi-annually
calculate: (# of years /2) * 3% = interest payable
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