Jul
07
INVESTMENT QUESTION IN FINANCIAL ACCOUNTING COURSE, HELP PLEASE?
ByPhyllis H asked:
On Jan 1, 2008, Tifosi Corp. purchases holds with a face worth of $100,000 and a face rate of 5%. Interest is paid annually each Dec 31, and the holds grown up on Dec 31, 2012. The marketplace seductiveness rate is 6% on the date of purchase. On Dec 31, 2008, the holds have a satisfactory marketplace worth of $97,000. If Tifosi deliberate the holds to be accessible for sale, what is the benefit (or loss) which should be famous in alternative extensive income?
On Jan 1, 2008, Tifosi Corp. purchases holds with a face worth of $100,000 and a face rate of 5%. Interest is paid annually each Dec 31, and the holds grown up on Dec 31, 2012. The marketplace seductiveness rate is 6% on the date of purchase. On Dec 31, 2008, the holds have a satisfactory marketplace worth of $97,000. If Tifosi deliberate the holds to be accessible for sale, what is the benefit (or loss) which should be famous in alternative extensive income?
Could any one assistance me on this problem? Really conclude it!
2 Comments
July 9th, 2009 at 1:16 am
Get your annuity tables out!
July 10th, 2009 at 2:41 pm
the bond matures in 5 years and pays 5000/year for 5 years and 100,000 at the end of 5 years. the discount rate is 6% and 1.06^5 = 1.3382. the future value of the bond at purchase was = 100000+(5000/0.06)*(1.3382-1) = 128,185. the purchase price was 128185/1.3382 = 95,744. the gain is 97000-95744 = $1,256.