Riley Co(1)

Riley Co(1) - 102% Redemption Price 40,800,000 Carrying...

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a Riley Co managers should consider calling the bond when market interest rate falls. b Face Value 40,000,000 Issue Price 39,000,000 Discount 1,000,000 Life of Bond 20 years Annual Amortization 50,000 Number of Years Passed (1997 to 2009) 13 years Amortized Discount (1997 to 2009) 650,000 Issue Price 39,000,000 Amortized Discount 650,000 Carrying Value, December 31, 2009 39,650,000 Face Value 40,000,000 Call Rate
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Unformatted text preview: 102% Redemption Price 40,800,000 Carrying Value, December 31, 2009 39,650,000 Redemption Price 40,800,000 Gain (Loss) from Redemption (1,150,000) Balance Sheet Assets = Liabilities + Equity Net Profit = Cash Bonds Payable Loss from Redemp Loss from Redemp-40,800,000-40,000,000-1,150,000-1,150,000 Discount on BP-350,000 Income Statement Income - Expense Loss from Redemp-1,150,000...
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This note was uploaded on 06/18/2011 for the course BUSN 5000 taught by Professor Online during the Spring '10 term at Webster.

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Riley Co(1) - 102% Redemption Price 40,800,000 Carrying...

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