The bonds have a par of 10000 pay interest at a 5 annual


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?

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Accounting Basics: The bonds have a par of 10000 pay interest at a 5 annual
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