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Mukesh purchased a $2,000 face value bond on January 2, 2022 for $2,000. The bond...

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Accounting

Mukesh purchased a $2,000 face value bond on January 2, 2022 for $2,000. The bond was issued on the same date and the maturity date of Bond is 5 years. Interest is payable at 6% compounded semi-annually on uncashed coupons on each of June 30 and December 31 at the investors option.

REQUIRED: Assume Mukesh does not exercise his option to receive any cash interest before maturity, What amount of income will Mukesh have to include in 2022 and 2023.

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