Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

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

Finance problems1 after placing 8000 in a savings account

Finance Problems 1. After placing $8,000 in a savings account paying annual compound interest of 7%, calculate the amount that will accumulate if it is left for 10 years? 2. Sarah Wiggum would like to make a single inves ...

Company a has inventory equal to 100000 with a current

Company A has inventory equal to $100,000 with a current ratio of 2.3 and quick ratio of 1.8, what is the level of the firms current liabilities?

The portfolio manager at rbc direct investment is

The portfolio manager at RBC Direct Investment is requesting your assistance to analyze and recommend a stock for their high value clients. These high value clients would only consider "Green Finance" companies. Green fi ...

1 when did gnma come into existence what was its original

1. When did GNMA come into existence? What was its original function? What is its main function now? 2. What is a mortgage-related security? What are the similarities and differences between mortgage securities and corpo ...

1 estimating the annuity amount amy and vince want to save

1. Estimating the Annuity Amount. Amy and Vince want to save $7,000 so that they can take a trip to Europe in four years. How much must they save each month to have the money they need if they can get 8% on their savings ...

1 distinguish between theory model and hypothesis2 describe

1. Distinguish between theory, model, and hypothesis. 2. Describe how researchers use induction versus deduction to generate research hypotheses. 3. Describe the process by which hypotheses are developed and tested.

Compare and contrast the fixed exchange rate free floating

Compare and contrast the fixed exchange rate, free floating, and managed floating systems? How can central banks use direct intervention to move the value of a currency? List and discuss the advantages and disadvantages ...

What is the objective of an industry self-regulatory

What is the objective of an industry self-regulatory organization? Compare and contrast three types of futures trading costs? Compare and contrast cash settlement with physical settlement? Identify the typical characteri ...

What information explicit and implicit can be derived from

What information (explicit and implicit) can be derived from financial statement analysis? Does the standardization required by GAAP add greater validity to comparisons of financial data between companies and industries? ...

Preferdiv incs preferred stock pays a 232 dividend every

PREFERDIV INC's preferred stock pays a $2.32 dividend every quarter forever. If the stock currently sells for $40.49, what is the investors' required rate of return? Write in the value with 4 decimal points but no % sign ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen