A company purchased $ 2 0 0 , 0 0 0 in bonds on July 1 ,

Fantastic news! We've Found the answer you've been seeking!

Question:

A company purchased $

200, 000

in bonds on July

1, 2024,

for $

200, 000 .

The bonds have a stated rate of

8 %,

pay semiannual interest, and mature in

4

years. As of December

31, 2024,

the fair value of the bonds has increased to $

205, 000 .

Assuming the investment is classified as trading securities

,

what amount would the company report for its investment in bonds on December

31, 2024 ?

Related Book For answer-question

Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

See More Books

Posted Date: Feb 15, 2024 05:58 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
On July 1, 2014, Imperial Inc., a public company, purchased $500,000 of Acme Corp. 10-year, 4% bonds for $461,000 to earn interest. The bonds had a market interest rate of 5%. The bonds pay interest...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Find a minimum spanning tree for the following graph using all 3 algorithms 13 17 22- 20 15, a. Adding the shortest edge first b. Deleting the longest edge first c. Growing a tree from the node D
1. A high school student decides to apply to four of the eight lvy League colleges. In how many possible ways can the four colleges be selected? 2. In how many different ways can a committee of 5...
Earlier in this chapter, you learned that most work in today's workplace is now being done by teams of employees. In your opinion, does the intensive use of self-managed teams make it easier or more...
Imagine pushing on a crate initially at rest so that it begins to move along a floor. (a) While you are setting the crate in motion, increasing its speed in the desired direction of travel, what is...
An injection molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year the machine is sold. The maintenance and operating cost is $235,000 with an annual gradient of...
1. 2. 3. (c) 11 Let f : R R be a continuous function such that f(3x)-f(x) =. If f(8) = 7, then f(14) is equal to: (a) 4 (b) 10 (d) 16 Let O be the origin and A be the point z = 1 + 2i. If B is the...
Assume the risk-free continuously compounded interest rate is $4 \%$ per annum. For an asset with today's price $A(0)=\$ 100$, you are told that its expected return is $10 \%$ per annum and...
Perform normalization by writing UNF, 1NF, 2NF and 3NF for the following user views. Please provide the answer in both table and schema form for each (UNF, 1NF, 2NF and 3NF) StorelD S101 S101 S101...
The ethics of buying and consuming is a. not as important as the ethics of producing and selling b. more important than the ethics of producing and selling c. just as important as the ethics of...
It cost $110,000,000 to repair two bridges. The goal is to restore the bridges in three years. The rate of return is 5%. How many municipal bonds should be sold today to fund the bridge project?...
Compute the break-even point in sales units for Basque Inc. from the following information: Unit contribution margin $14 Contribution margin ratio 36% Fixed costs $76,200 Sales 31,000 units Round...
A small trains station as a ticket booth with 1 agent. Requests for tickets and information are 12 per hour, and follow a Poisson distribution. The service time is assumed to follow an exponential...
Question: Given the master lock expects its wholesale distributors to provide virtually all the support needed by retailers, what kind of support do you think the wholesaler distributors should...
Discuss what is meant by the Vulnerability and dependence of organizations on the environment.
You've been asked to take over leadership of a group of paralegals that once had a reputation for being a tight-knit, supportive team, but you quickly figure out that this team is in danger of...
An alternative definition of the IRR is the rate which makes the principal at the beginning of year 6 equal to zero. 9 This is shown in the printout above, in which cell E9 gives the principal at the...
Below you will find annual return data for six furniture companies for the years 1982? 1992. Use these data to calculate the variance-covariance matrix of the returns. The remaining exercises refer...
Using the data from the previous example, simulate 36 months of stock returns assuming the same variance-covariance structure as the historical returns. Notice that it doesn?t make sense to assume...
What is the genetic code? a. The relationship between a three-base codon sequence and an amino acid or the end of translation b. The entire base sequence of an mRNA molecule c. The entire sequence...
Lets suppose a researcher mixed together nucleotides with the following percentages of bases: 30% G, 30% C, and 40% A. If RNA was made via polynucleotide phosphorylase, what percentage of the codons...
If a tRNA has an anticodon with the sequence 3-GAC-5, which amino acid does it carry? a. Aspartic acid c. Leucine b. Valine d. Glutamine

A company purchased $ 2 0 0 , 0 0 0 in bonds on July 1 ,

Question:

Expert Answer:

To calculate the amount the company would report for its investment in bonds on December ... View the full answer

Financial Modeling

Students also viewed these accounting questions