What price did linda pay for the bond

Assignment Help Accounting Basics
Reference no: EM133113334

Question - On December 31, 2021, Linda purchased from Wendy a $1,000 par value bond ("the Bond") issued by ABC Ltd. ('ABC"). ABC issued the Bond on July 1, 2020.

The Bond as issued by ABC had a 15 year maturity period.

Linda was attracted to the Bond because she knew that she would receive $75.00 in interest twice per year.

Linda has always followed the investment advice given to her by her Father, who advised Linda that a yield of 8% would always be adequate to satisfy her investment needs.

Required -

(a) What price did Linda pay for the Bond?

(b) What price would Linda have paid for the Bond if she had received interest only once per year?

Reference no: EM133113334

Questions Cloud

Define customer group and then invent product : Define a customer group and then invent a product and come up with a price, promotion, positioning, and distribution strategy.
What amount is charged against retained earnings : The share dividend was distributed on July 31, 2021, when the share market price was P90. What amount is charged against retained earnings
Abandoned based on your feasibility analysis : Explain whether the business idea needs to be modified, changed significantly, or abandoned based on your feasibility analysis.
What amount of cash would mary be willing to accept today : What amount of cash would Mary be willing to accept today as an alternative to waiting to receive the monies as referenced above
What price did linda pay for the bond : Linda was attracted to the Bond because she knew that she would receive $75.00 in interest twice per year. What price did Linda pay for the Bond
Nonaka takeuchi model of knowledge management : Explain the Knowledge conversion processes highlighted by Nonaka Takeuchi Model of Knowledge management
Parental styles and respective attitudes towards advertising : Differentiate between the four parental styles and their respective attitudes towards advertising, consumption and yielding to children's buying requests.
Successful sport entrepreneur : What characteristics are necessary to be a successful sport entrepreneur?
Discuss possible challenges of implementing pmis : Discuss possible challenges of implementing a PMIS in an organization that manages several projects from the perspective of:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find what is the gain on the sale of the bond

Straight-line amortization is employed. On December 31, 2018, the bonds were sold for P3,500,000 plus accrued interest. What is the gain on the sale of the bond

  Economies of scale exhausted at relatively

In which of the following industries are economies of scale exhausted at relatively low levels of output?

  What is the population being studied

Suppose that managers are interested in average dollar amount of all sales transactions at Gap stores in the US in 2015. What is the population being studied

  Prepare the journal entry on the books of the parnership

Prepare the journal entry on the books of the parnership to record the admission of Yellow as a new partner under the following two independent circumstances

  On january 1 2011 climax corporation signed a 10000000 6

on january 1 2011 climax corporation signed a 10000000 6 10-year mortgage note to finance the construction of its new

  How do large banks make money

The very idea of interest is not acceptable in some third-world, Who is winning this borrowing money "game" in the global world? How do large banks make money?

  Mith and jones each own tracts of land because of the

smith and jones each own tracts of land. because of the location of their current operations each would prefer to have

  Compute the net income of Pam Company

On January 1, 2020, Pam Company purchased an equipment for P3,000,000 cash for the purpose of leasing it. Compute the net income of Pam Company

  Why are investors risk-averse

Why are investors risk-averse? How can investors deal with different degrees of risk? What is the expected return on a portfolio? How can the expected return on a portfolio be manipulated to minimize the risk on that portfolio?

  Source documents matched with transactions

Following are a list of source documents and a list of transactions. Indicate by letter next to each transaction the source document that would serve as evidence for the recording of the transaction.

  Identify any potential problems for Terry and corporation

Terry, purchased her stock from a previous shareholder (a nonresident alien) on January 18, 2019. Identify any potential problems for Terry

  Instruction salaries for the last biweekly pay

During the fiscal year ended June 30, 2013, Harmon School District (see exercise E4- 2) paid salaries of $ 2,160,000, chargeable to the instruction appropriation. Instruction salaries for the last biweekly pay period in June 2013, amounting to $ 1..

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