User Account

All Pages

Determine the price of the bonds issued by EFG Pte Ltd

Assignment Help Accounting Basics
Reference no: EM132532240

Question - On 1 January 20X1, EFG Pte Ltd issues long-term bonds which are due on 31 December 20X5. Interest is paid semi-annually on June 30 and December 31 each year. The first interest payment is on 30 June 20X1. The face value of bonds is $400,000 with stated annual interest rate of 10%. At the time of issuance, the market interest rate is 12% per annum.

Required -

(a) Determine the price of the bonds issued by EFG Pte Ltd.

(b) Illustrate the accounting by EFG Pte Ltd for the issuance of the bonds by preparing the necessary journal entries, journal narrative not required, for the year 20X1.

Reference no: EM132532240

Questions Cloud

Distribution to approximate binomial distribution : Why would you want to use the normal distribution to approximate a binomial distribution? What is continuity correction?
Explain the accounting treatment by PLC Pte Ltd : The financial statements of PLC Pte Ltd had been completed but not yet released to shareholders. Explain the accounting treatment by PLC Pte Ltd
Suggest action management can take to mitigate the risk : Suggest one action management can take to mitigate the risk of fraud occurring when financial statements are being compiled. Provide the suitable example.
Determine how much will have in account at the end : How much will you have in this account at the end of 27 years? Assume that all interest received at the end of the period is reinvested the next period.
Determine the price of the bonds issued by EFG Pte Ltd : On 1 January 20X1, EFG Pte Ltd issues long-term bonds which are due on 31 December 20X5. Determine the price of the bonds issued by EFG Pte Ltd
Discuss the benefit of penetration testing : Discuss the benefit of penetration testing. Explain what that would entail in the organization and what the team could learn from the testing.
Analyze the size and liquidity of accounts : Data Analytics Assignment - Analyze the size and liquidity of Accounts Receivable by focusing on ratio analysis: Accounts Receivable as a percentage of sales
How many months will take : CEO plans to increase production at a rate of 5.24 percent per month until the firm is producing 7,282 of refrigerators per month. How many months will take?
What is falcons journal entry to record the acquisition : On Mar 12, Falcon Corp. paid $760,000 cash to buy the property, What is Falcon's journal entry to record the acquisition of these assets

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