on january 1 2014 fishbone corporation purchased 300 of the 1 000 face value 9 10 ye 702797
Aug 30, 2021 | Uncategorized
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On January 1, 2014, Fishbone Corporation purchased 300 of the $1,000 face value, 9%, 10 year bonds of Walters Inc. The bonds mature on January 1, 2024, and pay interest annually beginning January 1, 2015. Fishbone purchased the bonds to yield 11%. How much did Fishbone pay for the bonds? |
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Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,000 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Fishbone record as the cost of the machine? |