Coupon bond with a face value

Assignment Help Financial Accounting

Reference no: EM13866723

A company issues a 5-year, 4% coupon bond with a face value of $100,000. The effective market interest rate at the time of issuance is 2%. What are the proceeds from issuing the bond?

$128,414

$100,000

$109,471

$109,427

$83,778

Reference no: EM13866723

Questions Cloud

Recorded journal entry for the coupon payment on bond : On 6/30/12, a company recorded a journal entry for the coupon payment on its bond. As part of the journal entry, the company debited bonds payable. Which of the following is true regarding this journal entry?

Mortgage is transferred to the corporation : Ester transfers land (basis of $200,000 and fair market value of $355,000) to a controlled corporation in return for stock in the corporation. However, shortly before the transfer, Ester mortgages the land and uses the $25,000 proceeds to meet person..

How people think and behave in certain situations : Psychologists know a great deal about how people think and behave in certain situations. Many companies have found that this information can be used to increase the effectiveness of marketing and advertising campaigns

A cause and an effect of state level societies : a cause and an effect of state level societies

Coupon bond with a face value : A company issues a 5-year, 4% coupon bond with a face value of $100,000. The effective market interest rate at the time of issuance is 2%. What are the proceeds from issuing the bond?

Input impedance on transmission : An antenna having an input impedance on transmission of 70+j30 ohms is used on reception by connecting directly to a 50 ohms transmission line which is perfectly matched to a pure resistance load

George plans to accumulate-annual effective interest rate : George plans to accumulate $100,000 at the end of 42 years. He makes the following deposits:

Method of depreciation for plant : What are the various points or factors you would consider while choosing a method of depreciation for plant and equipment of an electricity company? Explain with examples.

Inverse laplace transform : 1. Find the Inverse Laplace Transform of the following:

User Account

All Pages