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Calculating the Price of Bonds

ben — Fri, 02 Oct 2009 10:17:47 +0000

Calculating the price of bonds always seems to be the hardest thing remember if you don’t use it on a daily basis. Some key ideas to keep in mind are:

Price of bonds = Present value of principal + Present value of interest payments

Interest to be paid each period is determined by coupon rate (stated interest rate) for that period.

Present value calculation is based on market interest rate.

On January 1, 2006, Company A issues long-terms bonds which are due on January 1, 2011. Interest is paid semiannually on January 1 and July 1 each year. Face amount of bonds is $500,000 with stated interest rate (coupon rate) of 10%. At the time of issuance, market interest rate is 8%. What will be the price of bonds issued by Company A?

Market interest rate = 8%

Market interest rate for a semiannual period = 8% / 2 = 4%

r = 0.04 (per semiannual period),

n = 10 (semiannual periods)

Present value of principal

= $500,000 x Present value factor for a single payment (4%, 10 periods)

= $500,000 x 0.6756

= $337,800

Interest payment each semiannual period

= $500,000 x 5%

= $25,000

(Coupon rate for a semiannual period = 10% / 2 = 5%.)

Present value of interest payments

= Interest payment each semiannual period

x Present value factor for an ordinary annuity (4%, 10 periods)

= ($500,000 x 5%) x 8.1109

= $202,773

Price of bonds

= Present value of principal + Present value of interest payments

= $337,800 + $202,773

= $540,573

The bonds will be sold at a $40,573 premium over the face amount.

($540,573 – $500,000 = $40,573)

Want to Know the 15 Fat Burning Foods? It’s True These Foods Will Help You Start to Burn Fat Immediately

ben — Wed, 23 Sep 2009 09:46:04 +0000

by Ryan Ke. Thompson

Today it seems like everyone is trying to push a weight loss program on us. Everything from pills to strict diet plans, no wonder it can be real confusing to know where to start.

The biggest problem with these fad diets and pills is that they were designed to fail. It may work temporarily but when you get off of these fad programs, it’s only a matter of time before you gain it all back. In today’s world we want it now, and that can cause a big problem when it comes to our health and weight loss.

The beginning of your success to losing weight starts with your nutrition and I’m going to share 15 fat burning foods that you can add to your diet today. These foods are healthy and designed to help the body break down fats and turn them into energy. You will be begin to feel a increase in energy and you will be losing weight at the same time.

The 15 fat burning foods are chicken, artichokes, lean turkey meat, green beans, cabbage, asparagus, celery, portabella mushrooms, almonds, salads mixed with cider vinegar and olive oil, barley, eggplant, salmon, cauliflower, and melons. Even if there are some foods that you found that you didn’t like, you can always just avoid them at the start. This is just a small sample of the different fat burning foods that you can try.

A lot of people ask if how these 15 fat burning foods work. When we look at the body we can think about how the foods actually get broken down. In the digestive process the liver naturally creates bile from fat cells in the body. Large amounts of bile are required to process foods that are high in fiber. This is why these foods are so great! These foods are generally low cal. and they make your body work harder to burn them. So if you are burning more calories than you are taking in you drop weight.

In order to keep your body constantly busy you will want to eat more than just the 15 fat burning foods that I gave you. You will want to make sure that you are getting a well balanced diet full of sprouted grains and lean meats. Knowing that fat in the body is just stored energy can give anyone the motivation to lose it. You will have to take the right steps and change your diet today. Eating fewer calories in the food will promote weight loss because you will be burning off the extra fat cells in the body.

About the Author
Go to Get Flat Abs NowTaking control of how we eat can be the most vital thing that we can ever do for our health. So don’t procrastinate and do what you need to do in order to start eating healthy today.

15 Fat Burning Foods

Pumpkin Wine

ben — Tue, 16 Sep 2008 16:43:00 +0000

Photo by: D3

Ingredients

* 5 lbs grated pumpkin flesh
* 3-1/4 lbs finely granulated sugar
* 1/2 oz citric acid
* 1 tsp yeast nutrient
* 1/4 tsp yeast energizer
* 6-1/2 pts water
* wine yeast

Procedure

Bring the water to a boil and stir in the sugar until dissolved. Remove from heat.

Place grated pumpkin flesh in primary and pour boiling water over pumpkin.

Allow to cool to room temperature and add citric acid, yeast nutrient and activated yeast.

Cover primary and stir daily for three days, submerging “cap” as necessary.

Pour through a nylon straining bag and let pumpkin drip drain.

Transfer to secondary and fit airlock. After 5 days, top up if necessary.

Rack after two weeks and again after additional 30 days, topping up and refitting airlock each time.

Set aside for 3 months and then rack, stabilize, sweeten if desired, wait 10 days for dead yeast to fall out, and rack into bottles.

Hard Apple Cider Recipe

ben — Tue, 16 Oct 2007 04:35:00 +0000

It’s not beer and it’s not wine, but making hard apple cider is always fun. You can do it the old fashioned way by pressing the apples or you can purchase the apple cider. If you purchase the cider, just make sure that there are no preservatives in it. Personally, I buy the apple cider from a local fruit market.

The recipe I found is from Sallys-Place.com and will make a 5 gallon batch. There is also an interesting history of hard cider on that site that is worth reading.

Enjoy the recipe and the reading.

Cidermaking is easy and fun. Here is a basic recipe for a Farmhouse Style cider (ingredients for five gallons):

5 gallons of fresh pressed sweet apple juice (known today as apple cider)

5 cups of sugar

1 package of Wyeast liquid lager brewers yeast (available at homebrew supply stores)

Transfer the juice and sugar using a sanitized funnel or food grade plastic hose into a sanitized glass or stainless-steel container at room temperature. Allow the sugar to dissolve and then pitch the lager yeast and affix a fermentation lock atop the carboy It will soon begin to bubble away releasing carbon dioxide as the yeast converts the sugars into alcohol. Allow the cider to ferment and mellow for at least two months before transferring it with your sanitized food grade hose into bottles, a keg, or any vessel you prefer. Then enjoy. Any homebrew supply shop can get you started with the proper advice and equipment.