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Problem 1: Juanito Manolete, acquired bonds issued by the local government of the state where he resides. What income does Juanillo expect to earn from making this purchase?
1-Compound interest income
2-Interest income and capital gains income
3-Earned income
4-Income subject to adjustments only by policies of the issuing company
Problem 2: When a company or government entity issues bonds, it must specify both the exact maturity date of these and the dates on which the interest payment will be made.
1-True
2-False
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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