Question: On March 1 , 2 0 2 4 , Navy Corporation used excess cash to purchase U . S . Treasury bonds for $ 1

On March 1,2024, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $100,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navys investment is accounted for as held-to-maturity. The fair value of the Treasury bonds is $101,000 at year-end.

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