![genesist720](/avatars/30197.jpg)
genesist720
19.02.2020 •
Business
A newly issued 10-year maturity, 9% coupon bond making annual coupon payments is sold to the public at a price of $980. What will be an investor’s taxable income from the bond over the coming year? The bond will not be sold at the end of the year. The bond is treated as an original issue discount bond. (Round your answer to 2 decimal places.)
Solved
Show answers
More tips
- A Auto and Moto Mastering One-Movement Parking: All You Need to Know...
- P Photography and Videography Understanding HDR: How It Works and Why You Need It...
- P Photography and Videography How to Choose the Perfect Photo Paper for Your Images?...
- C Computers and Internet How to Choose an Uninterruptible Power Supply (UPS) for Your Computer: Expert Tips...
- S Science and Technology How to choose a home theater system?...
- A Auto and Moto How to Choose a Car Wash? Tips and Recommendations...
- A Animals and plants How ants survive winter: exploring the secrets of their winter life...
- C Construction and repair How to Choose the Best Underfloor Heating?...
- S Sport When is the Champions League final?...
- S Sport When and Where Will the 2014 World Cup be Held?...
Answers on questions: Business
- E English What does marianne moore mean when she says imaginary gardens with real toads in them in this excerpt from poetry ?...
- M Mathematics The volume of a cube is represented by the expression below, where s is the side length of the cube. Find the volume of a plastic cube building block with a side length of...
- M Mathematics Pls help if you know it. (HELP) let P and Q be two positive numbers where P Q . Sam graphs the numbers p,q and their opposites on a number line. Which statement must be true...
- M Mathematics Find the total amount given the original price and tax rate. Round to the nearest cent if necessary. $31.69, 6%...
Ответ:
$88.2
Explanation:
980 x 9% = 88.2
In case of coupon bonds, there is periodic payment of interest. No imputed interest in involved. Investor simply pays tax on the amount received as interest income. As this coupon bond was as original issue and there is no involvement of secondary marketplace, so there would not be any imputed interest complications.
Ответ: