calculate the accrued interest on the 09-01-YR01 bond purchase. A...
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calculate the accrued interest on the 09-01-YR01 bond purchase.
A partial list of investment activities for Honda Inc. during YR01 and YR02 appears below. Date Event Sept. 1, YR01 Purchased $2,000 of bonds issued by Target Inc. The bonds were purchased at 104 and Honda also paid a broker's fee of $60. These bonds have a coupon rate of 6% and pay interest once each year, on February 1". The bonds are dated February 1, YR01, and mature on February 1, YR06 (five-year term). At present Honda does not have a definite plan for this investment beyond earning interest income. At the purchase date these bonds have an effective yield to maturity of 4.2% una funf "This
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