The USgovernment Will Pay Bringle $2,500,000 Each Six Months, Equal to to 2.5

The U.S.government will pay Bringle $2,500,000 each six months, equal to 2.5% of the $100 million face amount of the treasury bonds (5% annual coupon rate, paid in two installments each year) , and will repay the $100 million at the end of five years.At the time Bringle purchases the bonds, the market prices these bonds to yield Bringle 6% annually (3% each six months) .The bonds are classified as held to maturity.Bringle will record the following entry.

A) Marketable Securities..............................95,734,898
Cash.......................95,734,898
B) Marketable Securities................100,000,000
Cash................................100,000,000
C) Cash............................95,734,898
Marketable Securities.......................95,734,898
D) Cash........................... 100,000,000
Marketable Securities..........................95,734,898
E) Cash..................................105,907,059
Marketable Securities ............................105,907,059