Macy's, Inc. (formerly Federated Department Stores, Inc.) operates more than 880 department and furniture stores under the names of Macy's and Bloomingdales. The company does more than $19.00 billion in sales each year.
Assume that as part of its cash management strategy, Macy's purchased $10.00 million in bonds at par for cash on July 1, 2009. The bonds pay 8.20 percent annual interest each June 30 and December 31 and mature in 10 years. Macy's plans to hold the bonds until maturity.