Answered: An investor purchased a bond for… | bartleby

Century 21 Accounting Multicolumn Journal

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter18: Acquiring Capital For Growth And Development

Section18.2: Long-term Debt Financing

Problem 4AYU

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Please solve these financial accounting question

An investor purchased a bond for $1,000,
received $11 in interest, and then sold
the bond for $1,067 after holding it for
seven months. What is the holding period
return?

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Financial Accounting can you please give correct answer?
Please give me true answer this financial accounting question
Bonds pay the face value to the investor when they are a. held over 10 years. b. held 20 years. c. held until maturity. d. sold on the market before maturity.
According to the theory, premium bonds, discount bonds, and face value bonds at the expiry date will have a value of $1,000. Why is the value is $1,000 at the expiring day? Explain.
An investor purchased a bond 45 days ago for $985. He received $15 in interest and sold the bond for $980. What is the holding-period return on his investment? A. 1.92% B. 1.02% C. 0.50% D. 0.01%
What is the amount of bond interest expense for the first year?
Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31. Majestic’s balance sheet at December 31 should reporta. interest expense.b. interest revenue.c. interest payable.d. interest receivable.
A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $271,860. What amount of gain or loss would be recorded as part of this transaction?
What is the net cash received over the life of the bond investment?
What is the journal entry for the redemption of the bond? A Loss on bond redemption $4K B Gain on bond redemption $4K C Loss on Bond Redemption $2K
When the interest payment dates of a bond are May 1 and November 1,and a bond issue is sold on June 1, the amount of cash received by theissuer will be: a. increased by accrued interest from June 1 to November 1b. increased by accrued interest from May 1 to June 1c. decreased by accrued interest from June 1 to November 1d. decreased by accrued interest from May 1 to June 1
An investor purchases a 15-year, $100,000 par value bond that pays semiannual interest of $4,000. If the semiannual market rate of interest is 5%, what is the current market value of the bond? $89,620.34 $100,000.00 $84,627.55 $79,568.15

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