Original issue discount instrument

Assignment Help Accounting Basics
Reference no: EM13147443

Ted paid $73,600 to receive $10,000 at the beginning of each year for ten years. This would repay the principal plus 6% interest. What difference does it make whether the contract is treated as an annuity as compared to an original issue discount instrument

Reference no: EM13147443

Questions Cloud

Gain from the sale of the building : The prevailing rate of interest for a note of this type on January 1, 2010, was 9%. At what amount should the gain from the sale of the building be reported?
Frank jones is a college student who had a plow : Frank Jones is a college student who had a plow attached to his jeep so he could earn extra money plowing during the winter. Jones was under contract to plow the driveways of Mr. Washington and Ms. Adams, two neighbors down the street. John Smith liv..
Find the atomic no of the target atom : X-rays are incident on a target metal atom having 30 neutrons. The ratio of atomic radius of the target atom and 2He4 is (4)^(1/3). 1) Find the atomic no of the target atom.2) Find the frequency of Kalpha line emitted by this metal. R=1.1X10^7 /m ; c..
Cash basis taxpayer of capital expenditures : Payments by a cash basis taxpayer of capital expenditures: a) must be expensed at the time of payment b) must be expensed by the end of the first year after the asset is acquired
Original issue discount instrument : Ted paid $73,600 to receive $10,000 at the beginning of each year for ten years. This would repay the principal plus 6% interest. What difference does it make whether the contract is treated as an annuity as compared to an original issue discount ..
What volume will nitrogen gas occupy : What volume will nitrogen gas occupy if the pressure is increased to 894 torr at constant temperature?
What is the final volume of neon gas : What is the final volume of 845 mL of neon gas at 202°C if the gas is cooled to 86.0°C?
Depreciation under the straight-line method : Assuming that the compressor has a salvage value of $2,500, calculate its 2008 depreciation under the straight-line method
Using westlaw and/or a non-fee based legal resource : Conduct research, using Westlaw and/or a non-fee based legal resource on the Internet, for a recent court decision from the Supreme Court in the state in FL. The court case can be on any topic that is of interest to you.

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