A creditor provides a company with $100,000 cash by purchasing bonds at the end of Year 1.
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A creditor provides a company with $100,000 cash by purchasing bonds at the end of Year 1. The creditor receives $6,000 in interest from the company during Year 2. The creditor sells the bonds at the end of Year 2 or $102,000. What was the rate of return generated by this investment? (Round the percentage to the nearest whole number.)
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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