Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you bought a $10,000 canada bond on december 25, 2

You bought a $10,000 Canada bond on December 25, 2019, with a 3.5 % coupon...

70.2K

Verified Solution

Question

Accounting

You bought a $10,000 Canada bond on December 25, 2019, with a 3.5 % coupon and 20 years to maturity. You sold your bond on June 25, 2020, when market rates were 3.1%.

a. (3 pts) Without doing any calculations: Was the bond sold at a premium or a discount? Explain why.

b. (8 pts) What was the selling price on June 25, 2020?

c. (3 pts) What was the amount of the discount or premium

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Timothy made the statement that the leg structure of many vertebrate animals can be used...

Biology
1.2K views

What is the primary function of the Golgi apparatus?It houses genetic material.It packages and processes...

Basic Math
1.2K views

The current balance in Marianne'ssavings account is $525. The accountpays 3.5% compounded annually. Ifshe makes...

Algebra
1.2K views

20 A landscape design calls for a stone walkway made of three semi annuli as...

Algebra
1.2K views

Simplify the following product. x8x2x10Select the correct answer below:x18x20x22x19x28

Accounting
1.2K views

Howard Company had a transaction that caused a $5,000 decrease in both total assets and...

Accounting
1.2K views

Johannes Inc. acquired 80 percent of Corner Brook Ltd. common shares on January...

Accounting
1.2K views

16. On December 31, Red Berets sold one of its batting cages for $25,000. The...

Accounting
1.2K views

In its first year of business, Coronado purchased land, a building, and equipment on March...

Accounting
1.2K views

help? Exercise 8-16 Disposal of assets LO P2 Diaz Company owns...

Finance
1.2K views

If the following bonds are identical except for coupon, what is the price for Bond...

Accounting
1.2K views

1) Record the purchase of materials (on credit) 2) Record direct materials used in production...