Hector Kane HK) owns vast amounts of corporate bonds Suppose HKbuys $1,300.000 of Ovon bonds at a price of 103. The Oxon bonds pay cash interest at the annual rate of 79% and mature at the end of five years (The bonds pay cash interest annualy)How much did HK pay to purchase the bond investment? How much wi HK colect when the bond investment matures?How much cash interest will HK receive each year trom Ovon?WiI HKS annual interest revenue on the bond investment be more or less than the amount of cash interest received each year? Gve your reason.Compute HKs annual interest revenue on this bond investment. Use the straightine method to amortize the investment1.1. How much did HK pay to purchase the bond investment? How much will HK colect when the bond investment matures?HK paid sto purchase the bond investmentHK will colect at maturity2. How much cash interest will HK receive each year trom Con?HKw recerve annual cash interest of 53. W HCs annual intarest revenue on the bond imvestment be more or less than the amount of cash interest recerved each year? Give your reasonOA Annual interest revenue wil be more than the cash interest received each year because the investor bought the bonds at a premium. The diference between the purchase price paid and the face amount collected (the premium) creates an inoresse in interest revenue over the ife ofthe bondsOB Annual interest revenue wil be lesa than the cash interest received each year because the investor bought the bonds at a diacount. The diference between the purchase price paid and the face amount colected (the discount) oreates a reduction in interest revenue over the ife of thebondsDC Annual interest revenue wil be lesa than the cash interest received each year because the investor bought the bonds at a premium. The diference between the purchase price paid and the face amount collected (the premium) oreates a reduction in interest revenue over the ie ofthe bondsOD Annual interest revenua wil be more than the cash interest received each year because the investor bought the bonds ata discount The diference between the purchase prioe paid and the face amount collected (the discount) oreates an inorease in interest revenue over the ie ofthe bonds4. Compute HIs annual interest evenue on this bond investment. Use the straight-ine method to amortize the investmentHK wi recognize annual interest revenue S on the bond investment

Bonds are kind of instrument which is issued by company and purchase by investor , to raise or…

Hector Kane H owns vast amounts of corporate bonds Suppose HKbuys $1.300.000 of Ovon bonds at a price of 103. The Ovon bonds pay cash interest at the annual rate of 7% and mature at the end of five years (The bonds pay cash interest annualy How much did HK pay to purchase the bond investment? How much wi HK collect when the bond investment matures? How much cash interest will HK receive each year trom Ovon? WiI HS annual interest revenue on the bond investment be more or less than the amount of cash interest received each year? Give your reason Compute HKs annual interest revenue on this bond investment. Use the straightine method to amortize the investment 4. 1. How much did HK pay to purchase the bond investment? How much will HK collect when the bond investment matures? HK paid to purchase the bond investment Hwl colect maturity 2. How much cash interest will HK receive each year trom Cion? HK wi receve annual cash interest of 3. W Hs annual intarest revenue on the bond imvestment be more or less than the amount of cash interest recerved each year? your reason OA Annual interest revene wil be more than the cash interest received each year because the investor bought the bonds at a premium. The difference between the purchase price paid and the face amount collected the premium) creates an inoresse in interest revenue over the ife of the bonds OB Annual interest revenue wil be lesa than the cash interest received each year because the investor bought the bonds at a discount. The difference between the purchase price paid and the face amount oolected (the discount) oreates areduction in interest revenue over the life of the bonds OC Annual interest revenue wil be lens than the cash interest received each year because the investor bought the bonds at a premium. The difference between the purchase price paid and the face amount collected (the premium) oreates a reduction in interest revenue over the ife of the bonds OD Annual inerest revenua wil be more than the cash interest received each year because the investor bought the bonds at a discount. The diference between the purchase price paid and the face amount colected the discount) oreates an inorease in interest revenue over the e of the bonds