Purchase Solution

Total Proceeds of a Bond

Not what you're looking for?

Ask Custom Question

Septer corporation issued 2000 of its $1000, 8% ten-year bonds dated July 1, Year 1 on Sept 1, Year 1, at a time when the market paid 9% for bonds of similar risk. The bonds were quoted at 94 and pay interest quarterly on Sept 30 and Dec 31. What were the total proceeds of the bond issued at the time of sale?

Purchase this Solution
Solution Summary

This solution shows how to calculate the total proceeds of the given bond.

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Motivation

This tests some key elements of major motivation theories.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

View More Free Quizzes
Related BrainMass Solutions

  • cash&carry arbitrage

    from loan (underlying price of bond) Interest earned on borrowing (7.2% borrowing rate for four months) $98 $2.4 Total Proceeds $100.4 Arbitrage profit (Total proceeds - Total outplay) $1.4 (Fabozzi, 2009).

  • What is the holding period return of the bond, the common stock and the mutual fund?

    The second investment was Common stock which was purchased on December 16, 2004, at a cost of $106,000 and sold on December 18, 2005, the stock was sold for $86,456 and a total of $456.00 was received in dividends.

  • Accounting for Detachable Warrants

    Allocate the bond issue proceeds using the percentages derived in Step 1: Security % of Total Proceeds Allocated Proceeds Bond 90% $615,000 $553,500 ($615,000 x $540,000/$600,000 = $553,500) Warrant 10% $615,000 61,500 ($615,000

  • Journal entries for interest and bond amortization

    b) The interest payment on June 30, 2003, and the amortization of the bond premium using the straight line method. 3) Determine the total interest expense for 2002. 4) Will the bond proceeds always be greater than the face amount of

  • Bond calculations: discount, premium, amortization, cash-flow

    230985 Bond calculations in Excel 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.

  • Bonds and Dividends

    Total discount or premium = discount or premium per bond X number of bonds Discount per bond = 1,000-issue price Premium per bond = Issue price - 1,000 Disc/Premium Number of Total Disc Per bond Bonds Premium Bond A - discount 15 10,000

  • Finance - bonds

    230937 Finance 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.

  • What is the holding period return of the bond the common stock and the mutual fund?

    The second investment was Common stock which was purchased on December 16, 2004, at a cost of $106,000 and sold on December 18, 2005, the stock was sold for $86,456 and a total of $456.00 was received in dividends.

  • Holding period return of the bond the common stock

    The second investment was Common stock which was purchased on December 16,2004 ,at a cost of $106,000 and sold on December18,2005,the stock was sold for $86,456 and a total of $456.00 was recceived in dividends.

View More Related Solutions