Joseph purchased a $500 bond every year on March 1 from 2011 to 2019. All bonds earn a 6% coupon annually, and coupons were deposited into a bank account with 4% annual effective interest rate. All bonds matured at $500 on March 1, 2020. Calculate the accumulated value as of March 1, 2020. Round the answer to the nearest ten dollars.

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A: Here, Coupon Payment is $600 Face Value of Bond is $10,000 Time to maturity remaining at Feb 1, 2014…

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Q: On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each…

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Q: On 5th December 2020, Jerome purchases a government bond worth $400, with a maturity of 3 years,…

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Q: December 31 2025 2026

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Q: On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each…

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A: Introduction:  Serial bond: It is a bond that matures in steps, i.e., a part of the principal is…

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A: Here,

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Q: Richard purchased a $1,000 bond issued by Salient Industries on January 2, 2022. The bond is due in…

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A: Here,

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Q: On September 30, Stinky Bank issued 10-year bonds at an annual simple interest rate of 4.25%, with…

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Q: Mukesh purchased a $2,000 face value bond on January 2, 2022 for $2,000. The bond was issued on the…

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Q: Three years ago you purchased a Kraft Heinz corporate bond that pays 5.500 percent annual interest.…

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.