Homework Quiz—12 S11 Section 3

Homework Quiz—12 S11 Section 3 - S11 Homework...

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S11 Homework Quiz— 12 Section 3 Name Section At 11/1/08 ABC Company purchased bonds for which it prepared the following bond asset table. Date Interest Revenue Cash Flow Change in Carrying Amount Carrying Amount 409,730  5/1/09 15,979  15,120  859  410,589  11/1/09 16,013  15,120  893  411,482  5/1/10 16,048  15,120  928  412,410  11/1/10 16,084  15,120  964  413,374  5/1/11 16,122  15,120  1,002  414,376  11/1/11 16,161  15,120  1,041  415,417  5/1/12 16,201  15,120  1,081  416,498  11/1/12 16,243  15,120  1,123  417,621  5/1/13 16,287  15,120  1,167  418,788  11/1/13 16,333  435,120  (418,787) The bonds were purchased for $409,730 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 2011 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.

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Homework Quiz—12 S11 Section 3 - S11 Homework...

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