A firm issues a zero-coupon bond with a face value of $1,000,000 and a term of 10 years. If the market interest rate is 6%, what will the bond sell for when issued?
A firm sells a 30-year bond for a discount of $15,000 over its $200,000 face value. If the bond’s coupon rate is 7%, and they use straight line amortization methods for all intangible assets, what is their interest expense on the bond each year?
A firm sells a 20-year bond for a premium of $25,000 over its $250,000 face value. If the bond’s coupon rate is 7%, and they use straight-line amortization methods for all intangibles, what is their interest expense on the bond each year?
A firm paid $550,000 for a machine with a useful life of 20 years, at which point they expect to sell it for $50,000. Assuming they use time as their allocation basis and use straight line depreciation, how much depreciation will they record in year 2?
