On July 1, 19X7, T, an investor, purchased a newly issued corporate bond with a face value of $10,000 bearing 10 percent interest for a term of 30 years for $9,500.The bond pays interest semi- annually on December 31 and June 30.During 19X7 T received an interest payment of $1,000.Assume the bond's semi-annual yield to maturity is 10.6 percent.The original issue discount will increase T's interest income of $500 by how much in 19X7?

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The Answer of On July 1, 19X7, T, an investor, purchased a newly issued corporate bond with a face value of $10,000 bearing 10 percent interest for a term of 30 years for $9,500.The bond pays interest semi- annually on December 31 and June 30.During 19X7 T received an interest payment of $1,000.Assume the bond's semi-annual yield to maturity is 10.6 percent.The original issue discount will increase T's interest income of $500 by how much in 19X7?

On July 1, 19X7, T, an Investor, Purchased a Newly