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, what effect will the purchase have on consolidated income in the current and future years? What would the effects be if the purchase price reflected a 9% annual interest rate? Your response need not be quantified.

Answer rating: 100% (QA)

a Effect of purchase on consolidated income in the current year and future years The following are t... View the full answer