User Account

All Pages

By how much should the bond discount be reduced

Assignment Help Accounting Basics
Reference no: EM132075753

Question - On June 30, 2017, Sesame Corporation issued $10 million of its 8% bonds for $9.2 million. The bonds were priced to yield 10%. The bonds are dated June 30, 2017 and mature on June 30, 2018. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the six months ended December 31, 2017?

Reference no: EM132075753

Questions Cloud

What type of hedge is this- cash flow or fair value : What type of hedge is this- cash flow or fair value? Would you please explain to me if it is a cash flow or fair value hedge and why? Thank you
Does increased international business mean increased risk : 1. Will future expansion of international business be similar to that in the past?
What is the npv of the opportunity : You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 9.8 million today.
Increase in chinese world trade market share : 1. Is it beneficial for nations to become dependent on one another?
By how much should the bond discount be reduced : If the effective interest method is used, by how much should the bond discount be reduced for the six months ended December 31, 2017
What is the annual cost of debt to the company on the issue : S. Claus & Company is planning a zero coupon bond issue. The bond has a par value of $1,000, matures in 2 years, and will be sold at a price of $826.45.
Why is total risk not important to rational investors : We routinely assume that rational investors are risk-averse return-seekers; i.e., they like returns and dislike risk. If so, why do we contend.
What will be the impact on the company share price : What will be the impact on the company' share price, if they provide zero dividend as they are trying to build short term assets
Determine the charge on the capacitor and energy : Determine the charge on the capacitor and energy stored - find and draw the current waveform across the same Inductor. Show your steps and equations

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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