WK7 Homework

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

This preview shows pages 1–2. Sign up to view the full content.

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.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/23/2011 for the course CS 300 taught by Professor Matthewhoward during the Fall '09 term at Park.

Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online