Use the following information to answer the ten (10) questions. ABC issues bonds to help pay for a new acquisition. The

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answerhappygod
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Use the following information to answer the ten (10) questions. ABC issues bonds to help pay for a new acquisition. The

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Use the following information to answer the ten (10) questions.
ABC issues bonds to help pay for a new acquisition. Theface value of the bonds being issued is $150,000. The bondswill be repaid in 10 years. The coupon rate on the bonds is8%. The bonds pay interest semi-annually.
1) If the market rate at the time of issuance was 6%, howmuch interest will be paid to bondholders every six (6) months?
2) If the market rate at the time of issuance was 6%, howmuch will ABC pay to bondholders over the life of the bonds?
3) If the market rate at the time of issuance was 6%, howmuch interest will ABC receive upon issuance of the bonds?
4) If the market rate at the time of issuance was 8%, howmuch interest will ABC receive upon issuance of the bonds?
5) If the market rate at the time of issuance was 10%, howmuch interest will ABC receive upon issuance of the bonds?
6) If the market rate at the time of issuance was 6%, whatwill be the bond premium recognized upon issuance of the bonds?
7) If the market rate at the time of issuance was 6%, whatwould be the amount of interest expense if the amortization of thebond premium was $831 for the first payment of interest tobondholders?
8) When the bond is repaid at maturity, what is the totalamount of cash paid to bondholders to repay the principle of thebond?
9) What should be the balance in the bond payable after thebonds are repaid in ten (10) years?
10) As the market rate continues to increase, what happensto the proceeds ABC will receive given the coupon rate of 8%?Please choose from: Increase, Decrease, Not Change, or Cannotbe Determined
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