Jimmy incorporation issues $1,000,000 U.S. dollars of two-year bond on January 1st 2025 at par that's mature on December 31st 2026. the coupon rate of the bond is 4% payable annually on December 31^st. Jimmy year end is December 31^st. it does not accrue interest throughout the year.

Exchange rates are

January 1st 2025, 1CAD =0.99 US dollars

December 31st 2025, 1CAD = 0.97 US dollars

December 31st 26, 1CAD = 1.01US dollars

 

Average rates 2025, 1CAD = 0.98 U.S. dollars

Average rate 2026, 1CAD =  0.99 US dollars

How much of A foreign gain or loss should be recognized in regard to the interest payment on December 31 2025?

Answer rating: 100% (QA)

To determine the foreign gain or loss recognized in regard to the interest payment on December 31 20... View the full answer