ASSUMPTIONS:
The company has a good credit rating. The company is a calendar year company. The company issues a zero-coupon bond. The bond’s contract period is four years; it’s issued on January 01 of the current period; market rate of interest is 10% for this company’s credit rating; face value of the bond $100,000. There is no requirement for a sinking fund. There are no transaction expenses. The company receives proceeds of $68,301 (rounded).
L11-IA1-Q1 – What is the accrued interest for year 1 in dollars?
L11-IA1-Q2 – What is the CASH INTEREST PAID in year 1 in dollars?
L11-IA1-Q3 – What is the accrued interest for year 2 in dollars?
L11-IA1-Q4 – What is the CASH INTEREST PAID in year 2 in dollars?
L11-IA1-Q5 – What is the accrued interest for year 3 in dollars?
L11-IA1-Q6 – What is the CASH INTEREST PAID in year 3 in dollars?
L11-IA1-Q7 – What is the accrued interest for year 4 in dollars?
L11-IA1-Q8 – What is the CASH INTEREST PAID in year 4 in dollars?
L11-IA1-Q9 – * * * * * BONUS * * * * * What is the REAL RATE OF INTEREST (stated as a percent) FOR THIS BOND or LOAN in the lender’s eyes if the inflation rate for this bond’s four year period is 3% annually?
10 points to the best answers, please help me!!!!!!!
The company has a good credit rating. The company is a calendar year company. The company issues a zero-coupon bond. The bond’s contract period is four years; it’s issued on January 01 of the current period; market rate of interest is 10% for this company’s credit rating; face value of the bond $100,000. There is no requirement for a sinking fund. There are no transaction expenses. The company receives proceeds of $68,301 (rounded).
L11-IA1-Q1 – What is the accrued interest for year 1 in dollars?
L11-IA1-Q2 – What is the CASH INTEREST PAID in year 1 in dollars?
L11-IA1-Q3 – What is the accrued interest for year 2 in dollars?
L11-IA1-Q4 – What is the CASH INTEREST PAID in year 2 in dollars?
L11-IA1-Q5 – What is the accrued interest for year 3 in dollars?
L11-IA1-Q6 – What is the CASH INTEREST PAID in year 3 in dollars?
L11-IA1-Q7 – What is the accrued interest for year 4 in dollars?
L11-IA1-Q8 – What is the CASH INTEREST PAID in year 4 in dollars?
L11-IA1-Q9 – * * * * * BONUS * * * * * What is the REAL RATE OF INTEREST (stated as a percent) FOR THIS BOND or LOAN in the lender’s eyes if the inflation rate for this bond’s four year period is 3% annually?
10 points to the best answers, please help me!!!!!!!