You Have Two Bonds,both with a Face Value of $7,000

question 105

Multiple Choice

You have two bonds,both with a face value of $7,000.One of them matures one year from today,while the other matures one year after that.If the interest rate is 8 percent (0.08) per year,what is the difference in value between the two bonds?

• A)$480.11
• B)$578.52
• C)$317.46
• D)zero
• E)$925.92

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Definitions:

Adjusted Trial Balance

A list of all the accounts of a company, showing the balance of each after adjustments have been made for journal entries, typically used in the preparation of financial statements.

Debit Column Total

Represents the total sum of all debit entries within a specific period in accounting, which are recorded on the left-hand side of the ledger.

Balance Sheet Columns

Sections within a balance sheet representing assets, liabilities, and shareholders' equity at a specific point in time.

Capital Accounts

Financial accounts in a company's balance sheet that represent the owners' equity or the shareholders' stake in the company.