A 5－year floating－rate security was issued on January 1, 2006. The coupon rate formula

A company issues $10 million in 8% annual-pay, 5-year bonds, when the market rate is 8.25%.the initial balance sheet liability and liability one year from the date of issue are closest to:

value for a 0% coupon, 5-year, $100 par value option-free bond？

A. 78.12.

B. 80.05.

C. 79.94.

A.Debit to Bond Interest Expense of ￥30,000.

B.Credit to Cash of ￥33,000.

C.Debit to Discount on Bonds Payable of ￥3,000.

D.Debit to Bond Interest Expense of ￥33,000.

asury note is 4.33%, the relative yield spread of the bond is closest to:

A. 3.12%.

B. 172.06%.

C. 72.06%.

A.$1000

B.$621

C.$5

D.$5000

A.higher

B.lower

C.the same

D.cannot be determined

E.$1,000

Bao Capital issed a 5－year, $50 million face, 6% semiannual bond when market interest

Bao Capital issed a 5-year, $50 million face, 6% semiannual bond when market interest rates were 7%.The market yield of the bonds was 8% at the beginning of the next year.What is the initial balance sheet liability, and what is the interest expense that the company should report for the first half of the second year of the bond’s life (the third semiannual period)”

A.We are of the opinion that if you could increase your order to 3,000 pieces, we would allow a 5% discount#B.The oil price has risen sharply, so there is no possibility for us to cut the price to the extent you expected#C.We accept that our price is a bit higher than that of other suppliers, however, the quality of other companies do not measure up to ours. Besides, we offer 5-year warranty, while most of the other suppliers offe

.It is estimated that Bao will incur $100,000 in warranty expenses during its 5-year warranty period.Bao’s tax rate is 30%.To account for the tax implications of the warranty obligation prior to incurring warranty expenses, Bao should:

A.record a deferred tax asset of $30,000.

B.record a deferred tax asset of $30,000.

C.make no entry until actual warranty expenses are incurred.