Compute the annual interest payment on the bond

Assignment Help Accounting Basics
Reference no: EM132452108

Problem - Pearson Co issue its $165,600 at a price of 94, the stated rate is 6%, the bond term is 4 years, and the market rate is 8%. Assume the term of the bonds is 4 years.

Required - Compute the annual interest payment on the bond?

Reference no: EM132452108

Questions Cloud

Describe the three commonplaces of law : Describe the three commonplaces of law and create examples to illustrate the meaning of each commonplace
Determine the total long term liabilities : Assume on December 1, 2017, a company borrows funds to purchase equipment. On December 31, 2018, determine the total long term liabilities
Ethical virtue-aesthetic virtue : Is style a kind of virtue? Is is an ethical virtue or an aesthetic virtue? Is style something you think you should have in your own life? Discuss.
Briefly present the situationist critique of virtue ethics : Briefly present the situationist critique of virtue ethics. There are two types of response to this critique: the first accepts that there are no character
Compute the annual interest payment on the bond : Pearson Co issue its $165,600 at a price of 94, the stated rate is 6%, Compute the annual interest payment on the bond
What if the drug use constitutes a serious health risk : Do employers always have a right to know about employee drug use?What if the drug use has no effect on employee performance?
Are you more attracted to physicallism or dualism : Are you more attracted to physicallism or dualism? Develop reason in develop reason in defense of your choice.
What are anthony flew and basil mitchell arguments : What are Anthony Flew's and Basil Mitchell arguments in standard form in the essay "Theology and Falsification"?
Compare mexico illegal immigration policy : Compare Mexico's illegal immigration policy with the current USA policy. Then compare those to Donald Trumps proposed policy

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.

  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!

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