Question: Subsidiary Company S has 1 000 000 of bonds outstanding at 8

Subsidiary Company S has $1,000,000 of bonds outstanding at 8% annual interest. The bonds have 10 years to maturity. If the parent, Company P, is able to purchase the bonds at a price that reflects 6% annual interest, how will the non-controlling interest be affected in the current and future years? Your response need not be quantified.

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  • CreatedApril 13, 2015
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