Reference no: EM13912090
Debt Valuation: Interest-Bearing Debentures
At the beginning of the year, Global Minds Inc. issued $100 million (maturity value) of 20-year debentures.
The debentures carried a 4% per period coupon rate, were subject to semiannual compounding, and had been issued at a time when the yield rate was 6% per period.
Required
1. Calculate the proceeds received by Global Minds when the bonds were sold.
Use Excel or a financial calculator for your computations. Do not round until your final answer. Round your answer to the nearest dollar.
3. Calculate the market value of the bonds if, after 10 years, the market yield rate is 10% per period.
Use Excel or a financial calculator for your computations. Do not round until your final answer. Round your answer to the nearest dollar.
4. Calculate the financial effects to each account as a result of retiring the Global Minds bonds after 15 years assuming that the market yield rate is 10% per period at the time of retirement.
Use Excel or a financial calculator for your computations. Do not round until your final answer. Round your answer to the nearest dollar.
Enter an increase to an account as a positive number, and decreases to an account as a negative number.
Bonds Payable
Bond discount
Cash
Gain/(Loss)
|
Find an example of misleading use of statistics in magazine
: Find an example of a misleading use of statistics in a newspaper, magazine, corporate annual report, or other source. Then explain why your example is misleading.
|
|
Steps in the accounting cycle
: The steps in the accounting cycle for a merchandising company are the same as those in a service company except.
|
|
Identify three specific factors about bfa
: Assume you are an investor in BFA. As an investor, what type of information would you be interested in reviewing before making an investment in BFA? Do you believe that BFA should have been exempt from Arizona banking laws? Why or why not?
|
|
Concentration of the sodium benzoate
: Benzoic acid, C6H5COOH, is a weak acid with Ka = 6.46 × 10-5. If 40.00mL of 0.100 M benzoic acid were mixed with 10.00mL of 0.200M sodium hydroxide. Bearing in mind the assumptions mentioned in the last part of the introduction, calculate
|
|
Interest-bearing debentures
: At the beginning of the year, Global Minds Inc. issued $100 million (maturity value) of 20-year debentures.Calculate the proceeds received by Global Minds when the bonds were sold.
|
|
Develop a frequency distribution of overall design quality
: Develop a frequency distribution of the overall mechanical quality ratings. Describe the distribution. Develop a relative frequency distribution of the overall design quality ratings. Describe the distribution.
|
|
Discuss how the intervals differ from each other and why
: Display the 95% prediction interval on the fitted line plot. Follow the same steps in part (b) except check Display prediction interval. Discuss how the intervals differ from each other and why. Construct residual plots for this model and interpr..
|
|
Invested into the employees account
: If an individual earning $50,000 per year has an opportunity to participate in an employee sponsored.How much per year will be invested into the employees account.
|
|
Construct a percentage pie chart of overall design quality
: Construct a percentage pie chart of the overall design quality ratings for each of the following: automobiles of United States origin; automobiles of Pacific Rim origin.
|