PartI: Watch this video about tips for investing in bonds. From this video research and discuss bond that you would want to invest in and why. (in 250 words) Video: https://youtu.be/Flc8npYgpQw Part...

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PartI:


Watch this video about tips for investing in bonds. From this video research and discuss bond that you would want to invest in and why. (in 250 words)
Video:
https://youtu.be/Flc8npYgpQw

Part II:


If you were the CFO of Apple and you have approx.$50 billion in cash on your balance sheet,what type of diversified portfolio would you set up for Apple. ( in 250 words)


Take a look at this link also:



http://smallbusiness.chron.com/reasons-corporations-invest-securities-65618.html



https://www.investopedia.com/articles/03/072303.asp


Part III:


Complete the "Chapter 14 - Problem"





Farmingdale State College Chapter 14 – Problem ABC Company issued $200,000 face value bonds on January 1, 2017, with semiannual interest payments to be made on June 30 and December 31 at a contract rate of 10%. The bonds were scheduled to mature five years after they were issued. On January 1, 2020, three years after the bonds were issued, the company repurchased 40% of the outstanding bonds for $79,000. Required: Part A 1. Assume that the bonds were issued when the market rate of interest was 9%. Show calculation of issue price. If using the effective interest method of amortization, prepare a schedule showing the bond interest expense and amounts of amortization for the life of the bonds. If using straight line, show the calculation of the periodic amortization within the appropriate journal entries explanations. 2. Prepare the journal entry to record the bond issuance. 3. Prepare journal entries for the first two interest payments. 4. Prepare the journal entry to recognize the partial repurchase of the bonds. Part B Redo Part A under the assumption that the market rate on the bonds when issued was 16%.

Answered Same DayOct 15, 2020BUS102

Answer To: PartI: Watch this video about tips for investing in bonds. From this video research and discuss bond...

Aarti J answered on Oct 20 2020
134 Votes
Sheet1
        Calculating the cash received on issuance of bonds:
        Present value of $200000 to be disc
ounted @ 4.5% for 10 years    $ 128,785.54
        PV of interest    $ 79,127.18
        PV of bonds    $ 207,913
        Period    Beginning    Interest expense    Inteest paid    Premium Amortized    Unamortizedpremium    End of period carrying amount
        0                    $ 7,913    $ 207,913
        1    $ 207,913    $ 9,356.07    10000    $ 643.93    $ 7,268.79    $ 207,268.79
        2    $ 207,269    $ 9,327.10    10000    $ 672.90    $ 6,595.89    $ 206,595.89
        3    $ 206,596    $ 9,296.81    10000    $ 703.19    $ 5,892.70    $ 205,892.70
        4    $ 205,893    $ 9,265.17    10000    $ 734.83    $ 5,157.87    $ 205,157.87
        5    $ 205,158    $ 9,232.10    10000    $ 767.90    $ 4,389.98    $ 204,389.98
        6    $ 204,390    $ 9,197.55    10000    $ 802.45    $ 3,587.53    $ 203,587.53
        7    $ 203,588    $ 9,161.44    10000    $ 838.56    $ 2,748.96    $ 202,748.96
        8    $ 202,749    $ 9,123.70    10000    $ 876.30    $ ...
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