Determine the amount of the gain or loss on bond retirement

Assignment Help Financial Management

Reference no: EM131897536

The following information pertains to a bond issue of the Fusso Corporation:

Maturity value: $1,000,000

Maturity date: December 31, 2016

Stated interest rate (Coupon rate): 8%

Interest payments are made annually on December 31st

Date of issue: December 31, 2011

Effective (market) interest rate (Yield to maturity) at issue: 10%

On December 31, 2014, the Fusso paid $950,000 to retire entire bonds. $950,000 did not include the coupon payment. The coupon was paid just before the announcement of the bond retirement.

Determine the amount of the gain or loss on the bond retirement. (Express gain using +, and loss using -. Format: +$xx,xxx or -$xx,xxx)

Reference no: EM131897536

Questions Cloud

Write about single moms and dads : Write down the 250 words on the following topic: Single Moms And Dads. Your response should be typed, single-spaced. All sources used, must be referenced.

Inflation is expected to decline steadily in the future : Assume that inflation is expected to decline steadily in the future, but that the real risk-free rate, r*, will remain constant.

Analyze why the us does not recognize all of the efforts : Analyze why the United States does not recognize all of the efforts, tribunals, courts, and declarations of international law. Cite an example.

Find the standard matrix for the linear transformation : Find the standard matrix for the linear transformation on R2 that sends a vector to its reflection through the line in the direction [0,1]

Determine the amount of the gain or loss on bond retirement : The following information pertains to a bond issue of the Fusso Corporation: Determine the amount of the gain or loss on the bond retirement.

Develop a thesis and argumentation : Develop a thesis and argumentation. This will allow you to review what you have already studied and develop research about a topic that interests you.

Complete the given therapy chart : Complete the following Pharmacotherapy and Medication Assisted Therapy chart. For each "Purpose of Medication," list the name of a medication that is used.

Ellipse or hyperbola in standard form : Rewrite the equation for each ellipse or hyperbola in standard form. State whether the equation represents an ellipse or a hyperbola, and identify the center.

The yield to maturity on one year zero coupon bonds : The yield to maturity on 1 year zero coupon bonds is currently 8%, the YTM on 2 year zeros is 9%.

User Account

All Pages