Investor corp. was interested in investing in bonds and, on 01/01/2012 purchased 8% bonds dated january 1, 2012. these bonds had a face amount of $10 million, pay interest on 06/30 and 12/31, and mature in 10 years. for bonds of similar risk and maturity, the market yield is 6%. investor corp. uses the effective interest method. 1. prepare investor corp.’s entry to record the bond purchase? 2. prepare investor corp.’s entry on 06/30/2012 and on 12/31/2012 to record interest?
Answers: 1
Another question on Business
Business, 22.06.2019 11:40
During 2016, nike inc., reported net income of $3,760 million. the company declared dividends of $1,022 million. the closing entry for dividends would include which of the following? select one: a. credit cash for $1,022 million b. credit dividends for $1,022 million c. debit net income for $1,022 million d. credit retained earnings for $1,022 million e. debit dividends for $1,022 million
Answers: 1
Business, 22.06.2019 14:40
In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?
Answers: 3
Business, 22.06.2019 18:30
Health insurance protects you if you experience any of the following except: a: if you have to be hospitalized b: if you damage someone's property c: if you need to visit a clinic d: if you can't work because of illness
Answers: 2
Business, 22.06.2019 19:00
What is an equation of the line in slope intercept formm = 4 and the y-intercept is (0,5)y = 4x-5y = -5x +4y = 4x + 5y = 5x +4
Answers: 1
You know the right answer?
Investor corp. was interested in investing in bonds and, on 01/01/2012 purchased 8% bonds dated janu...
Questions
History, 03.08.2019 23:30
Business, 03.08.2019 23:30
Health, 03.08.2019 23:30
Physics, 03.08.2019 23:30
Biology, 03.08.2019 23:30
Physics, 03.08.2019 23:30
Health, 03.08.2019 23:30
Mathematics, 03.08.2019 23:30
Mathematics, 03.08.2019 23:30
