WK7 Homework

WK7 Homework - WEEK 7 HOMEWORK P13-1. The initial proceeds...

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1 WEEK 7 HOMEWORK P13-1. The initial proceeds per bond, the size of the issue, the initial maturity of the bond, and the years remaining to maturity are shown in the following table for a number of bonds. In each case, the firm is in the 40 percent tax bracket, and the bond hhas a $1,000 par value. Proceeds per Size of Initial Maturity Years Remaining Bond Bond Issue of Bond to Maturity A $ 985 10,000 bonds 20 years 15 years B $1,025 20,000 bonds 20 years 16 years C $1,000 22,500 bonds 20 years 9 years D $ 960 5,000 bonds 20 years 15 years E $1,035 10,000 bonds 20 years 16 years a. Indicate whether each bond was sold at a discount, at a premium, or at its par value, ( see pages 49-60 ) b. Determine the total discount or premium for each issue, ( see pages 453-454 ) c. Determine the annual amount of discount or premium amortized for each bond, ( see pages 453-454 ) d. Calculate the unamortized discount or premium for each bond, ( see pages 453-454 ) e.
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This note was uploaded on 08/23/2011 for the course CS 300 taught by Professor Matthewhoward during the Fall '09 term at Park.

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WK7 Homework - WEEK 7 HOMEWORK P13-1. The initial proceeds...

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