On January 1, 2021 Conway Corp. issued bonds that had an aggregate face value of $100,000,000 and a coupon of 2.0%, with cash interest payable annually at the end of each year. At the time the bonds were issued the market required rate of return for bonds of similar risk was 6.0%. The company received cash proceeds of $80,000,000. If Conway instead had issued zero coupon bonds with a face value of $100 million, a 6-year maturity and a yield to maturity of 6%.
a) How much cash did Conway receive from the bond issue? Show the journal entries relating to the bond issue.
b) What was the GAAP interest expense on these bonds in 2021 On December 31, 2021 the market rate of interest for the bonds issued on January 1, 2021 had dropped to 2%.
c) What was the Present Value of these bonds on December 31, 2021?
d) Some charitable entities can issue bonds which are tax-exempt, and the purchaser of the bond does not have to pay income tax on the interest income. If such an entity issued bonds identical in all other respects to those of Conway Corp. would it expect to receive higher or lower proceeds from the bond issuance than Conway did? Why?

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy. the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.