What is the total interest income that will be reported


Question - Alpha company purchases a bond investment on January 1, 2017. The bonds have a par of $10000, 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?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: What is the total interest income that will be reported
Reference No:- TGS02366998

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)