Purchase Solution

Solving for Cash Interest

Not what you're looking for?

Ask Custom Question

Question: Hooker Company sells $200,000 of ten-year, 8% bonds to yield 10% on January 1, 2005. The bonds pay interest annually on December 31. The bonds were sold at a discount of $24,578. The amount of cash interest paid in 2005 on the bonds is ?

Purchase this Solution
Solution Summary

In just under 100 words, this solution explains how to calculate the amount of cash interest on a particular bond. All calculations are provided.

Solution Preview

The cash interest paid is computed by multiplying the face value of the bonds by the stated interest rate. Thus the figures to use are the ...

Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Introduction to Finance

This quiz test introductory finance topics.

Organizational Leadership Quiz

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

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

View More Free Quizzes
Related BrainMass Solutions

  • expectations hypothesis

    For the cash flow that occurs at the end of the first year, use the one-year spot rate. For the cash flow that occurs at the end of the second year, use the two-year spot rate.

  • Compound interest

    44477 Solving a compound interest problem Problem: $4000 deposited at 12% interest compounded monthly will grow to $43570.22 in 20 years. What is the i, n, P, and F for this situation?

  • Solving Time Value of Money Problems

    (Solving for an annuity payment) You would like to have $1,000,000 accumulated by the time you turn 65, which will be 40 years from now.

  • Implementing the TVM Concepts

    (Solving for an annuity payment) You would like to have $1,000,000 accumulated by the time you turn 65, which will be 40 years from now.

  • Capital Budgeting : Internal Rate of Return

    Year: 0 1 2 3 4 Cash flows: -$1,000 $250 $230 $210 $190 IRR = interest rate where NPV =0 Let IRR = i NPV = -1000 + 250/(1+i)^1 + 230/(1+i)^2 + 210/(1+i)^3 + 190/(1+i)^4 solving

  • Coupon rate to sell at par value

    We can write 1,000 = (0.5 (C+C/.17) + 0.5 (C+1,280))/1.12 solving for C, we get C as $121.79 The coupon rate should be 121.79/1,000 = 12.18% The solution explains how to calculate the coupon rate so as to sell the bonds at par value

  • Bond Values and Stock Prices

    The expected price for current market interest rates are given.

  • Solving Cash Flow Problems

    456141 Solving Cash Flow Problems Decide whether each is an operating, financing or investing activity or a non cash transaction. Tell whether the effect on cash flow is an increase or decrease? 1. Increased accounts payable. 2.

  • Bank Reconciliation & Adjusting Entries

    May 31 Sales Revenue 10 Accounts Payable 40 Cash 23 Accounts Payable 27 Accounts Receivable 734 Cash 734 Cash 80 Interest Revenue 80 Cash 2,000

View More Related Solutions