A company has made an investment in government bonds. The bonds will generate an interest income of OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of the stream of interest income. Select one: a. 11300.50 b. 10000.46 c. 12000.40 d. 11372.36

A company has made an investment in government bonds. The bonds will generate an interest income of OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of the stream of interest income. Select one: a. 11300.50 b. 10000.46 c. 12000.40 d. 11372.36

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Characteristics of Bonds

Question

A company has made an investment in government bonds. The bonds will generate an interest income of
OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of
the stream of interest income.
Select one:
a. 11300.50
b. 10000.46
c. 12000.40
d. 11372.36

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