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On January 1, 2010, Donahue Company, a calendar-year company, issued $400,000 of notes payable, of which $100,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2010, is
Coupon Interest Rate
The percentage of a bond's value that is paid out in interest to the bondholder annually, identical to the coupon rate.
Yield To Maturity
The total return anticipated on a bond if it is held until it matures, considering all interest payments and the repayment of principal.
Par Value
The face value or nominal value of a bond, share of stock, or other financial instrument, usually representing its value upon issuance.
Total Rate Of Return
The overall amount of profit or loss generated by an investment over a given period, including both capital gains and income, expressed as a percentage of the initial investment.
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