Homework Quiz—12 S11 Section 1

Homework Quiz—12 S11 Section 1 - S11...

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S11 Homework Quiz— 12 Section 1 Name Section At 12/1/08 ABC Company purchased bonds for which it prepared the following bond asset table. Date Interest Revenue Cash Flow Change in Carrying Amount Carrying Amount 12/1/08 594,908  6/1/09 18,442  18,000  442  595,350  12/1/09 18,456  18,000  456  595,806  6/1/10 18,470  18,000  470  596,276  12/1/10 18,485  18,000  485  596,761  6/1/11 18,500  18,000  500  597,260  12/1/11 18,515  18,000  515  597,775  6/1/12 18,531  18,000  531  598,306  12/1/12 18,547  18,000  547  598,854  6/1/13 18,564  18,000  564  599,418  12/1/13 18,582  618,000  (599,418) The bonds were purchased for $594,908 and are classified in the “Hold to Maturity” category. Required : 1. What is the bond’s face interest rate? 2. What is the bond’s effective or market interest rate? 3. What was the bond’s 2009 interest revenue? 4.
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This note was uploaded on 03/03/2012 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Homework Quiz—12 S11 Section 1 - S11...

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