A company has made an investment in government bonds. The bonds will generate an interest income of OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of the stream of interest income. Select one: a. 11300.50 b. 10000.46 c. 12000.40 d. 11372.36

A company has made an investment in government bonds. The bonds will generate an interest income of OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of the stream of interest income. Select one: a. 11300.50 b. 10000.46 c. 12000.40 d. 11372.36

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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Characteristics of Bonds

Question

A company has made an investment in government bonds. The bonds will generate an interest income of
OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of
the stream of interest income.
Select one:
a. 11300.50
b. 10000.46
c. 12000.40
d. 11372.36

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