On February 1, 2011, Pyle Inc. had excess cash on hand. The controller suggested to management that the company buy $200,000 of U.S. Treasury bonds selling at 102 and paying 8 percent interest. Interest payments on these bonds are made semiannually on January 1 and July 1.

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The Answer of On February 1, 2011, Pyle Inc. had excess cash on hand. The controller suggested to management that the company buy $200,000 of U.S. Treasury bonds selling at 102 and paying 8 percent interest. Interest payments on these bonds are made semiannually on January 1 and July 1.