How much cash did the investor receive

Assignment Help Accounting Basics
Reference no: EM133123912

Question - On April 1st of the current fiscal year, a publicly-traded company issued 2,000 bonds each with a maturity value of $10,000 for a total maturity value of $20,000,000. They received a total of $18,600,000. Every bond sold for the same price. The stated annual interest rate for the bonds is 4% and interest is to be paid semi-annually on September 30th and March 31st. The bonds mature 10 years from the issue date. The issuing company uses the straight-line method of amortization and their fiscal year ends on December 31st.

An investor purchased a $10,000 bond on April 1, the issue date, and the investor still owned the bond on December 31st, the end of the current fiscal year. How much cash did the investor receive in interest from this investment in the current fiscal year?

Reference no: EM133123912

Questions Cloud

Explain using the idea of comparative advantage : It is often said that trade acts like an increase in productivity, because it allows countries to produce and consume more. How is this possible? Explain using
Mobile technologies or internet of things : Why are organizations applying this technology? Identify and describe one real-world example. Explain why it is beneficial to study IT today?
What advantages will you gain based on your decision : You have been running a successful business and have branched out into complimentary markets. What advantages will you gain based on your decision
Discuss differences in healthcare politics : Discuss the differences in healthcare politics. Explain how the two countries finance their healthcare systems.
How much cash did the investor receive : An investor purchased a $10,000 bond on April 1, the issue date, How much cash did the investor receive in interest from this investment in current fiscal year
Six pillars or dimensions of aristotelian virtue ethics : Discuss what are the six pillars or dimensions of Aristotelian virtue ethics according to Robert C. Solomon. What is moral muteness, what causes it,
Characteristics of normal distribution : When our data aligns to the characteristics of normal distribution, it maintains specific properties that help us interpret results and make decisions.
What is the current book value of this machine : Charleston, LLC purchased a machine exactly 5 years ago for $1,800,000. What is the current book value of this machine
Practical export distribution channel : On behalf of 3M, propose and illustrate a practical export distribution channel with appropriate adoption of several export intermediaries. The channel should b

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd