Amortisation schedule for the debentures

Assignment Help Business Management
Reference no: EM131064363

AMber Ltd issues 2 million $2, 5 year, 6% semi-annual coupon debentures to the public on 1 January 2014. At that date the market requires a 4% return for similar debentures. AMber Ltd's nalance date is 31 December.

Required:

a) Calculate the issue price for the debentures, showing calculations.

b) Prepare a repayment/amortisation schedule for the debentures

c) Provide the journal entries (with narrations) for:

i) 1 January 2014

ii) 31 December 2015 (second year); and

iii) 31 December 2018 (end of the debenture term).

Reference no: EM131064363

Questions Cloud

A weekend traffic problem during the summer season : A small tourist resort has a weekend traffic problem during the summer season and is considering whether to provide emergency services to help mitigate the congestion that results from an accident or breakdown.
Measurement of investment performance : You and a prospective client are considering the measurement of investment performance, particularly with respect to international portfolios for the past 5 years. The data you discussed are presented in the following table:
Discuss stratified sampling in details : 1. Explain quota sampling and its advantages as well as disadvantages. 2. Discuss stratified sampling in details.
Company expected profit for sales of boxes : a. Items are packed into boxes of 1000, and each item has a probability of 0.001 of having some type of fault. What is the probability that a box will contain fewer than three defective items?
Amortisation schedule for the debentures : AMber Ltd issues 2 million $2, 5 year, 6% semi-annual coupon debentures to the public on 1 January 2014. At that date the market requires a 4% return for similar debentures. AMber Ltd's nalance date is 31 December.
Analysis the current situation and the recent evolution : Analysis of the current situation and the recent evolution of this market. Degree of competitiveness and pricing policies: Price discrimination, markups.
How the information gained from the study can be applied : Journal Article Review Paper: Search for an interesting article from the past five years (e.g. Journal of Positive Psychology. Pick a study of interest to you, and then summarize and critique it. Things to discuss are the design of the study (e.g...
Problem regarding the option valuation : Rebecca is interested in purchasing a European call on a hot new stock, Up, Inc. The call has a strike price of $100 and expires in 90 days. The current price of Up stock is $120, and the stock has a standard deviation of 40% per year. The risk-fr..
Theoretical frequency distribution of the number : A man has four cars for hire. The average demand on a weekday is for two cars. Assuming 312 weekdays per year, obtain the theoretical frequency distribution of the number of cars demanded during a weekday.

Reviews

Write a Review

Business Management Questions & Answers

  Regional general manager at apex rent

Mr. Lear is concerned that Apex might lose this disappointed

  External influences of the market

they are constantly changing and adapting to current conditions, political trends and external influences of the market. Have you encountered or read about any current financial issues which should perhaps be addressed by the GAAP standard setting..

  Analyze the three internal governance mechanisms

Analyze the three internal governance mechanisms

  Discuss the significance of effective performance

Illustrate what are the different ways of monitoring the progress of a marketing goal? Explain how does monitoring help the organization succeed in achieving which goal?

  Examine the impact that the work innovation network

Examine the impact that the Work Innovation Network (WIN) has had on the Knowledge Management (KM) initiative at Hewlett-Packard (HP). Next, give your opinion on the influence of both initiatives on the evolution of organizational learning. Support y..

  Single-index model regression

Two portfolio managers use different procedures to estimate alpha. One uses a single-index model regression, the other the Fama-French model. Other things being equal, would you prefer the portfolio with the larger alpha based on the index model o..

  Managing workplace safety and health

What are the top priorities and steps that this organization should focus on as it develops its workplace health and safety programs to address the key health, safety, and security issues that face this industry?

  Equilibrium analysissome foolish teenagers play chicken on

equilibrium analysissome foolish teenagers play chicken on friday nights. two teenagers drive their cars at each other

  Would you support implementing a defined benefit plan

Chutney is a small, publicly traded manufacturer in Pennsylvania that makes electronic devices. It has a non-organized workforce. There are about 500 employees, 75% of which are non-skilled workers making about $40,000 per year. About 20% of the empl..

  Strategies and performance of a businesshow would you

strategies and performance of a businesshow would you analyze whether a strategy has failed or whether the

  Discussion on public policy analysis

What is the value of sharing these potential alternatives with legislators when determining departmental budgets for an upcoming year?

  Does it effectively communicate the products benefits

Does it effectively communicate the products benefits. Could the ad be redesigned to have more universal appeal without sacrificing its effectiveness at the target segment.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd