Eagles Auto invested in bonds of ABC, which it intends to hold until maturity 1/1/22. These 5-year bonds were dated 1/1/17, had a face value of $75,000, and pay 4% interest annually on 12/31. Eagles purchased these bonds when the market rate of interest was 3%. Complete the entire amortization table for this investment and record all entries for the life of the investment, rounding all values to the nearest dollar. (Use Excel to determine the purchase price.)

Question

Quizplus · Accepted Answer

The Answer of Eagles Auto invested in bonds of ABC, which it intends to hold until maturity 1/1/22. These 5-year bonds were dated 1/1/17, had a face value of $75,000, and pay 4% interest annually on 12/31. Eagles purchased these bonds when the market rate of interest was 3%. Complete the entire amortization table for this investment and record all entries for the life of the investment, rounding all values to the nearest dollar. (Use Excel to determine the purchase price.)

Eagles Auto Invested in Bonds of ABC, Which It Intends