What is the total interest income

Assignment Help Accounting Basics
Reference no: EM131568080

Question - Alpha company purchased a bond investment on Jan 1, 2017. The bonds have a par of $10,000, pay interest at a 5% annual rate and have 5 years until maturity. What is the total Interest Income that will be reported over the life of the bond investment if the bonds were purchased at 95 and Alpha uses the straight line amortization method?

Reference no: EM131568080

Questions Cloud

Create a analysis of the teams chosen organization : Assignment: Organizational Climate- Create a 700-word analysis of the team's chosen organization and its climate regarding organizational behavior.
Determine the dollar value of alpha company : Use this info to determine the dollar value of Alpha Company: Gain or loss on retirement of bond (Enter any loss dollar & amount inside of brackets)
Why is the given article relevant to todays managers : Write a summary of the news story and the key learning points you will take away from the article. Why is this article relevant to today's managers?
How much is interest earned on interest : Consider a $3,000 deposit earning 9 percent interest per year for four years. How much is interest earned on interest?
What is the total interest income : The bonds have a par of $10,000, pay interest at a 5% annual rate and have 5 years until maturity. What is the total Interest Income
Why is it important not to view concept of whistleblowing : Why is it important not to view the concept of "whistleblowing" as "tattling" or "ratting" on another employee?
What is the business worth : You have been asked by an investor to value a local restaurant. What is the business worth?
Essential link between citizens and governments : Public administration is an essential link between citizens and governments. With the rapid pace of globalization.
Community or on the internet : Question: Choose an existing privately owned healthcare system in your community or on the internet.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd