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Bonds Payable

The document contains sample bond valuation problems and their solutions. It provides present value tables and asks the reader to calculate things like present value of principal, present value of interest payments, issue price of bonds, and proceeds from bond issues. It provides information like face value, interest rate, term, yield, and issue dates to solve for the requested values.

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John Williever Gonzalez
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17 views3 pages

Bonds Payable

The document contains sample bond valuation problems and their solutions. It provides present value tables and asks the reader to calculate things like present value of principal, present value of interest payments, issue price of bonds, and proceeds from bond issues. It provides information like face value, interest rate, term, yield, and issue dates to solve for the requested values.

Uploaded by

John Williever Gonzalez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1. On January 1, 2019, Ellison Co.

issued eight-year bonds with a face value of P1,000,000 and a state

Present value of 1 for 8 periods at 6%........................................... .627

Present value of 1 for 8 periods at 8%........................................... .540

Present value of 1 for 16 periods at 3%......................................... .623

Present value of 1 for 16 periods at 4%......................................... .534

Present value of annuity for 8 periods at 6%................................. 6.210

Present value of annuity for 8 periods at 8%................................. 5.747

Present value of annuity for 16 periods at 3%............................... 12.561

Present value of annuity for 16 periods at 4%............................... 11.652

1. The present value of the principal is __________________

2. The present value of the interest is ___________________

3. The issue price of the bonds is ________________

4. Downing Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2019 on January 1, 2019

2.50% 3.00% 5.00% 6.00%


Present value o 0.88385 0.86261 0.78353 0.74726
Present value o 0.7812 0.74409 0.61391 0.55839
Present value o 4.64583 4.57971 4.32948 4.21236
Present value o 8.75206 8.5302 7.72173 7.36009

5. Feller Company issues P20,000,000 of 10-year, 9% bonds on March 1, 2019 at 97 plus accrued inte

Sol. Ans.
1 1,000,000 0.534 534,000
2 1,000,000 0.03 11.652 349,560
3 534,000 349,560 883,560
4 5,000,000 0.78 3,906,000 1,312,809 5,218,809
5 20,000,000 0.97 1,800,000 0.17 19,700,000
e of P1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yiel

, 2019 on January 1, 2019. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%.

019 at 97 plus accrued interest. The bonds are dated January 1, 2019, and pay interest on June 30 and December 31. What is the t
he bonds were sold to yield 8%. Table values are:

nds are issued to yield 5%. What are the proceeds from the bond issue?

December 31. What is the total cash received on the issue date?

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