答案和详解如下： 11.What is the unamortized discount on the date when the bonds are issued? A) $15,729. B) $2,249. C) $1,748. D) $499. The correct answer was B) The unamortized discount at the time bonds are issued will be $2,249.
Face value of bonds = $67,831
Proceeds from bond sale = $65,582 [I/Y = 8.00%, N = 4, PMT = $4,748.17 ($67,831 x 0.07 ), FV = $67,831 ]
Unamortized discount = $2,249 ($67,831 - $65,582)
12.What is the unamortized discount at the end of the first year? A) $1,209. B) $538. C) $2,247. D) $1,750. The correct answer was The unamortized discount will decrease by $499 at the end of first year and will be $1,750.
Interest expense = $5,247 ($65,582 x 0.08)
Coupon payment = $4,748 ($67,831 x 0.07)
Change in discount = $499 ($5,247 - $4,748)
Discount at the end of first year = $1,750 ($2,249 - $499)
13.A long-term bond is sold at a discount. In subsequent years cash flow from operations will be: A) understated. B) properly stated. C) cannot be determined from the data given. D) overstated. The correct answer was D) Cash interest is only part of the interest expense. The amortization of the bond discount at maturity is charged to financing cash flow when in fact it should be charged against cash flow from operations, so CFO will be overstated.
14.The actual coupon payment on a bond is reported on the statement of cash flow as: A) a financing cash outflow. B) an investing cash outflow. C) an operating cash outflow. D) a business cash outflow. The correct answer was C) The coupon payment is recorded on the statement of cash flows as an operating cash outflow because cash flow from operations includes a deduction for interest expense.
15.A firm issues a $5 million zero coupon bond with a maturity of four years when market rates are 8 percent. Assuming semiannual compounding periods, the total interest on this bond is: A) $1,200,000. B) $1,200,411. C) $1,346,549. D) $1,600,000. The correct answer was C) The interest paid on the bond will be the difference between the future value of the bond of $5,000,000 and the proceeds of the bond when it was originally issued. First find the present value of the bond found by N=8; FV=5,000,000; I=4; PMT=0; CPT PV=-3,653,451. This is the amount of money the bond generated when it was originally issued. Then take the difference between the $5,000,000 future price and the $3,653,451 from the proceeds = $1,346,549 which is the interest paid on the bond.
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发表于 2008-4-18 17:16
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