Bonds: Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest. To identify: The correct option

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Answer 1

Question

Chapter C, Problem 1MCQ

To determine

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option

Expert Solution & Answer

Explanation of Solution

Option d, $625 is correct.

Given,
Value of bond is $30,000.
Interest rate is 5%.
Interest paid on February 1 and on August 1.
Calculate amount of interest accrued on December 31.

Formula to calculate the interest is,

Interest=Value of bond×Interest rate×Number of months

Substitute $30,000 for value of bond, 5% for interest rate and 5 months (from August to December) in the above equation.

Interest=$30,000× 5 100 × 5 12 =$625

Thus, the amount of interest revenue accrued at December 31 is $625.

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Answer 2

Question

Chapter C, Problem 1MCQ

To determine

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option

Expert Solution & Answer

Explanation of Solution

Option d, $625 is correct.

Given,
Value of bond is $30,000.
Interest rate is 5%.
Interest paid on February 1 and on August 1.
Calculate amount of interest accrued on December 31.

Formula to calculate the interest is,

Interest=Value of bond×Interest rate×Number of months

Substitute $30,000 for value of bond, 5% for interest rate and 5 months (from August to December) in the above equation.

Interest=$30,000× 5 100 × 5 12 =$625

Thus, the amount of interest revenue accrued at December 31 is $625.

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Answer 3

Question

Chapter C, Problem 1MCQ

To determine

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option

Expert Solution & Answer

Explanation of Solution

Option d, $625 is correct.

Given,
Value of bond is $30,000.
Interest rate is 5%.
Interest paid on February 1 and on August 1.
Calculate amount of interest accrued on December 31.

Formula to calculate the interest is,

Interest=Value of bond×Interest rate×Number of months

Substitute $30,000 for value of bond, 5% for interest rate and 5 months (from August to December) in the above equation.

Interest=$30,000× 5 100 × 5 12 =$625

Thus, the amount of interest revenue accrued at December 31 is $625.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter C, Problem 1MCQ

To determine

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option

Expert Solution & Answer

Explanation of Solution

Option d, $625 is correct.

Given,
Value of bond is $30,000.
Interest rate is 5%.
Interest paid on February 1 and on August 1.
Calculate amount of interest accrued on December 31.

Formula to calculate the interest is,

Interest=Value of bond×Interest rate×Number of months

Substitute $30,000 for value of bond, 5% for interest rate and 5 months (from August to December) in the above equation.

Interest=$30,000× 5 100 × 5 12 =$625

Thus, the amount of interest revenue accrued at December 31 is $625.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter C, Problem 1MCQ

To determine

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option

Expert Solution & Answer

Explanation of Solution

Option d, $625 is correct.

Given,
Value of bond is $30,000.
Interest rate is 5%.
Interest paid on February 1 and on August 1.
Calculate amount of interest accrued on December 31.

Formula to calculate the interest is,

Interest=Value of bond×Interest rate×Number of months

Substitute $30,000 for value of bond, 5% for interest rate and 5 months (from August to December) in the above equation.

Interest=$30,000× 5 100 × 5 12 =$625

Thus, the amount of interest revenue accrued at December 31 is $625.

Answer 6

Chapter C, Problem 1MCQ

To determine

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option

Expert Solution & Answer

Explanation of Solution

Option d, $625 is correct.

Given,
Value of bond is $30,000.
Interest rate is 5%.
Interest paid on February 1 and on August 1.
Calculate amount of interest accrued on December 31.

Formula to calculate the interest is,

Interest=Value of bond×Interest rate×Number of months

Substitute $30,000 for value of bond, 5% for interest rate and 5 months (from August to December) in the above equation.

Interest=$30,000× 5 100 × 5 12 =$625

Thus, the amount of interest revenue accrued at December 31 is $625.

Answer 7

Chapter C, Problem 1MCQ

To determine

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option

Answer 8

Expert Solution & Answer

Explanation of Solution

Option d, $625 is correct.

Given,
Value of bond is $30,000.
Interest rate is 5%.
Interest paid on February 1 and on August 1.
Calculate amount of interest accrued on December 31.

Formula to calculate the interest is,

Interest=Value of bond×Interest rate×Number of months

Substitute $30,000 for value of bond, 5% for interest rate and 5 months (from August to December) in the above equation.

Interest=$30,000× 5 100 × 5 12 =$625

Thus, the amount of interest revenue accrued at December 31 is $625.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. C - Prob. 1MCQ Ch. C - Prob. 2MCQ Ch. C - Prob. 3MCQ Ch. C - Prob. 4MCQ Ch. C - Prob. 5MCQ Ch. C - Prob. 1DQ Ch. C - Prob. 2DQ Ch. C - Prob. 3DQ Ch. C - Prob. 4DQ Ch. C - Prob. 5DQ

Bonds: Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest. To identify: The correct option

Bonds: Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest. To identify: The correct option

Explanation of Solution

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Chapter C Solutions

Bonds:

Bonds are financial instrument, generally issued to raise a large amount of debt with an assurance to repay the sum with applicable interest.

To identify: The correct option