On 12/31, 2020, Phil purchased a $20,000 10 year bond with a 9% coupon at issuance...

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On 12/31, 2020, Phil purchased a $20,000 10 year bond with a 9% coupon at issuance for $16,568 It's priced to yield 12% and pays interest seminannually on 6/30 and 12/31. What is the original issue discount as issuance? For the first 3 semi-annual periods, what is the amortization of OID? How much interest income will Phil recognize in 2021? What is his basis in the bond as of 12/31/2021? On 12/31, 2020, Phil purchased a $20,000 10 year bond with a 9% coupon at issuance for $16,568 It's priced to yield 12% and pays interest seminannually on 6/30 and 12/31. What is the original issue discount as issuance? For the first 3 semi-annual periods, what is the amortization of OID? How much interest income will Phil recognize in 2021? What is his basis in the bond as of 12/31/2021?

Answer rating: 100% (QA)

Answer Cash int 20000 45 basis 6 Discount amortised ... View the full answer