Business

Brent

23 April, 09:35

On january 1, 2016, an investor paid $306,000 for bonds with a face amount of $340,000. the stated rate of interest is 9% while the current market rate of interest is 11%. using the effective interest method, how much interest income is recognized by the investor in 2016 (assume annual interest payments and amortization) ?

+4

Answers (1)

Know the Answer?

Not Sure About the Answer?

Get an answer to your question ✅ “On january 1, 2016, an investor paid $306,000 for bonds with a face amount of $340,000. the stated rate of interest is 9% while the current ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.

Search for Other Answers

You Might be Interested in

During 2015, Bears Inc. recorded credit sales of $680,000. Before adjustments at year-end, Bears has accounts receivable of $300,000, of which $51,000 is past due, and the allowance account had a credit balance of $2,700.

An example of a renewable resource is timber, or wood from trees to make paper and other prod True False

Assume the price of salt increased from $0.30 in 1985 to $0.50 in 1995. If we calculate the average rate of price increase for salt over this period, we could accurately say:a. the real price of salt definitely increased during the period. b.

The current price of XUM stock is $35. Jason places a limit order for 100 shares at $30, GTC. The price falls to $30.05 and then rises over the course of a month to $42. Which is correct?

The payroll department provides services for several plants in the city of yee haw junction. the payroll department's budget is $100,000 and it issues 4,000 checks every other week. the lighting plant has 1,000 employees.

New Questions in Business

Vaughn Manufacturing's prepaid insurance was $197000 at December 31, 2021 and $90300 at December 31, 2020. Insurance expense was $62000 for 2021 and $55000 for 2020.

If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will decrease. b.

Which of the following is a disadvantage of the sole proprietorship form of ownership

Products that are essential for life, such as water or groceries, yield more marginal utility than rare products, such as diamonds or luxury vehicles. A. True B. False.

Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost.