Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...
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An investor buys a bond for

​$5,000.

The bond pays

​$144

interest every six months. After 18​ months, the investor sells the bond for

​$4,736.

Describe the types of income​ and/or loss the investor had.

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Follow-up Question
The current income is
​$enter your response here.
​ (Round to the nearest​ dollar.)
Part 2
The investor would experience
a capital gain
a capital gain
a capital loss
neither
in the amount of
​$enter your response here.
​(Choose from the​ drop-down menu and enter a loss as a negative number rounded to the nearest​ dollar.)
Part 3
The total return on this investment is
​$enter your response here.
​(Round to the nearest​ dollar.)
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