Assume that H Company purchases $18,000 of U.S. Treasury bonds at their face amount on September 14, 20Y9, plus accrued interest for 45 days. The bonds have an interest rate of 6% payable on July 31 and January 31.What is the amount of accrued interest on September 14, the purchase date? Group of answer choices $18,000 $1,080 $540 $135
Assume that H Company purchases $18,000 of U.S. Treasury bonds at their face amount on September 14, 20Y9, plus accrued interest for 45 days. The bonds have an interest rate of 6% payable on July 31 and January 31.What is the amount of accrued interest on September 14, the purchase date? Group of answer choices $18,000 $1,080 $540 $135
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume that H Company purchases $18,000 of U.S. Treasury bonds at their face amount on September 14, 20Y9, plus accrued interest for 45 days. The bonds have an interest rate of 6% payable on July 31 and January 31.What is the amount of accrued interest on September 14, the purchase date?
Group of answer choices
$18,000
$1,080
$540
$135
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