Ask Question, Ask an Expert


Ask Basic Finance Expert

problem: Coley Co. issued 30 million dollar face value of 9%, ten year bonds on June 1, 2009. The bonds pay interest on yearly basis on May 31 each year.

[A] Suppose that the market interest rates were slightly higher than 9 percent when the bonds were sold. Would the proceeds from the bond issue have been less than, more than, or equal to the face value?  describe your answer.

[B] Independent of your answer to part [A], suppose that the proceeds were $29,640,000. Make journal entry to show the effect of issuing the bonds.

[C] Compute the interest expense that Coley Co. will show with respect to these bonds in its income statement for the fiscal yr ended September 30, 2009, suppose that the discount of $360,000 is amortized on a straight line basis.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920282

Have any Question? 

Related Questions in Basic Finance

Evaluate sokols conduct and determine which if any of the

Evaluate Sokol's conduct and determine which, if any, of the CFA Institute Standards of Professional Conduct are applicable. For each applicable Standard, determine whether conduct complied with or violated the Standard. ...

Suppose you borrow 300000 at 7 for 30 years with 0 points

Suppose you borrow $300,000 at 7% for 30 years with 0 points. Suppose also that the mortgage note includes a prepayment penalty of 1% of the mortgage balance if the mortgage is prepaid within 10 years. What is the effect ...

The european central banks primary objective is price

The European Central Bank's primary objective is price stability. Policymakers interpret this objective to mean keeping inflation below, but close to, 2 percent, as measured by a euro-area Consumer Price Index. In contra ...

To which market index would you refer to see how well the

To which market index would you refer to see how well the stock market is performing? Why? Why do you think the movements of the Dow and the S&P 500 are highly correlated?

Introductionthe focus of this assignment is on risk and

Introduction The focus of this assignment is on Risk and Return. The expectation is that students will develop skills in measuring returns, risk assessment and analysis. Students are required to use the data provided in ...

Business finance discussion boardi need the following for

Business Finance Discussion Board I need the following for the coca-cola company Overview: Industry Analysis and Competitive Advantage We will focus on the company's competitive environment. The choice of which competito ...

Everrest incs stock has a 53 chance of producing a 1425

Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a 27.50% return, and a 22% chance of producing a -4.25% return. What is the firm's expected rate of return?

Geotechnical instrumentation is frequently employed for

Geotechnical Instrumentation is frequently employed for monitoring the condition of reclamation. Sometimes two piezometers are installed inside the same borehole. What is the reason behind this?

Monetary policy today assess the economic situation today

Monetary Policy Today: Assess the economic situation today. Is the administration more concerned with reducing unemployment or inflation? Does the Fed have a similar opinion? If not, is the administration publicly critic ...

The growth in global sourcing and supply often

The growth in global sourcing and supply often levels  the playing field for adding worldwide value. Companies need at least to  consider, if not implement, global value chains as their predominant mode of  business. The ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate