Homework Week 7

Homework Week 7 - 13-1.A. Indicate whether each bond was...

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Unformatted text preview: 13-1.A. Indicate whether each bond was sold at a discount, at a premium, or at its par value. BondPremium/DiscountADiscountBPremiumCParDDiscountEPremiumB. Determine the total discount or premium for each issue. BondPremium/Discount (per Bond)Number of BondsTotal Premium/Discount A$15 10,000 $150,000 B$25 20,000 $500,000 C$0 22,500 $0 D$40 5,000 $200,000 E$35 10,000 $350,000 C. Determine the annual amount of discount or premium amortized for each bond. BondTotal Premium/Discount Initial MaturityAnnual AmortizationA$150,000 20$7,500 B$500,000 25$20,000 C$0 12$0 D$200,000 25$8,000 E$350,000 30$11,667 D. Calculate the unamortized discount or premium for each bond. BondAnnual AmortizationYears Remaining to MaturityUnamortized Premium/DiscountA$7,500 15$112,500 B$20,000 16$320,000 C$0 9$0 D$8,000 15$120,000 E$11,667 16$186,667 E. Determine the after-tax cash flow from the unamortized discount associated with the retirement now of each of these bonds, using the values developed in part (d)....
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Homework Week 7 - 13-1.A. Indicate whether each bond was...

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