Purchase Solution

Calculating the maturity amount for bondholders.

Not what you're looking for?

Ask Custom Question

On January 1, Bank, Rupp & Baroque, Inc. issued $50,000 worth of 10-year, 9% bonds for $48,890. How much cash will bondholders receive when the bonds mature? (Assume that the final interest payment has already been made separately.)

Purchase this Solution
Solution Summary

The solution determines the maturity amount of bondholders in the given case.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

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.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Interest payments and price of the bond

    If I'm able to calculate the total present value of interest payments how do I get to the amount of interest payment that the bondholders receives each year?

  • Multiple Choice

    AAA bonds with 5 years to maturity. BBB bonds with 5 years to maturity. 26. Which of the following actions would tend to reduce conflicts of interest between stockholders and bondholders?

  • Calculating Annual Contract Rate

    Records and tracks the bondholders' names. B. Is unsecured; backed only by the issuer's credit standing. C. Has varying maturity dates for amounts owed. D. Identifies rights and responsibilities of the issuer and the bondholders. E.

  • Bond Yield and Interest

    Bondholders receive the coupon interest each year. Amount is 1,000X8%=$80 B. The price of the bond will be the present value of interest and principal discounted at the YTM.

  • Calculating a Corporation's Cost of Debt

    374244 Calculating a Corporation's Cost of Debt Calculate the cost of debt: Shanken Corp issued a 30 year, 7 percent semiannual bond 7 years go. The bond currently sells for 108% for its face value. The company's tax rate is 35%.

  • Finance practice problems

    c. the company's ROI and working capital have been increasing over time. d. the maturity rate has been declining. The amortization of bond discount: a. increases the cash paid to bondholders for interest.

  • Bond Terminology

    Has varying maturity dates for amounts owed. D. Identifies rights and responsibilities of the issuer and the bondholders. E. Can be exchanged for shares of the issuer's stock. F. Is unregistered; interest is paid to whoever possesses them. G.

  • Investment in bonds and stocks

    for dividend payments The rate of return required by bondholders is typically lower than that required by stockholders The rate of return required by stockholders is typically greater than that required by bondholders What type of investor

  • Interest Rate Risk and Bond Pricing

    What will be the amount of your gain or loss over the original purchase price? c. What would be the amount of your gain or loss had the treasurer originally purchased a bond with a 4-year rather than a 20-year maturity?

View More Related Solutions