accounting

On December 31, 2008, University Theatres issued $500,000 face value of bonds. The stated rate is 6 percent, and interest is paid semiannually on June 30 and December 31. The bonds mature in 10 years.

Required:

If required, round your answers to the nearest whole dollar. Follow the format shown in present value tables as you complete the requirements below.

a. Assuming the market rate of interest is 4 percent, calculate at what price the bonds are issued.
b. Assuming the market rate of interest is 8 percent, calculate at what price the bonds are issued.

  1. 👍 0
  2. 👎 0
  3. 👁 63
asked by me

Respond to this Question

First Name

Your Response

Similar Questions

  1. accounting

    On December 31, 2013, University Theatres issued $500,000 face value of bonds. The stated rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in 15 years. If required, round your answers to

    asked by brenda on April 22, 2014
  2. accounting

    Selling price of a bond: Problem type 1 On December 31, 2008, $140,000 of 9% bonds were issued. The market interest rate at the time issuance was 11%. The bonds pay on June 30 and December 31 and mature in 10 years. Compute the

    asked by Nick on June 13, 2011
  3. Accounting

    On December 31, 2013, Ruby Inc. issued 3,000 $1,000 par value bonds with a stated rate of 6% and a 10-year maturity. Interest is payable semiannually on June 30 and December 31.

    asked by jordan on March 8, 2015
  4. accounting

    herman company received proceeds of $188,500 on 10-year, 8% bonds issued on january 1, 2009. the bonds had a face value of $200,000, pay interest semi-annually on june 30 and december 31, and have a call price of 101. herman uses

    asked by debbie on November 10, 2010
  5. accounting

    The market interest rate for Christian Charities is 8% on January 1, 2008. On that day, Christian Charities issued the following bonds. A. $500,000 7-year 7% bond B. $300,000 10-year 9% bond For both bonds, interest is paid

    asked by kayla on April 23, 2012
  6. accounting

    On December 31, 2009, $150,000 of 14% bonds were issued. The market interest rate at the time of issuance was 15%. The bonds pay interest on June 30 and December 31 and mature in 8 years. Compute the selling price of a single

    asked by bry on February 21, 2012
  7. accounting

    On March 1, 2008, five-year bonds are sold for $254,013 that have a face value of $250,000 and an interest rate of 10%. Interest is paid semi-annually on March 1 and September 1. Using the straight-line amortization method,

    asked by Simone on December 7, 2008
  8. accounting

    On April 1, 2008, Company issued $600,000, 9% bonds for $645, 442 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2018. So the way I started the entry was: April 1, 2008 DR

    asked by Dani on October 3, 2008
  9. accounting

    Ignoring income taxes compute the amount of loss, if any, to be recognized by Banno as a result of retiring the $900,000 of bonds in 2007 and prepare the journal entry to record the retirement. On January 2, 2002, Banno

    asked by laxer22 on September 23, 2008
  10. math

    A & B Antiques issued the following bonds: Date of issue and sale: April 1, 20-1 Principal amount: $430,000 Sale price of bonds: 100 Denomination of bonds: $1,000 Life of bonds: 10 years Stated rate: 8%, payable semiannually on

    asked by lol on March 14, 2014

More Similar Questions