Don Ono Purchased Yoko Bonds with a Face Value of $30,000

question 59

Essay

Don Ono purchased Yoko bonds with a face value of $30,000 in the secondary market on March 1, 2012, at a price of $28,340 plus a brokerage fee of $280 and accrued interest. Interest at 10 percent is payable on January 1 and July 1 each year. The bonds were originally issued on January 1, 2011, and mature on January 1, 2014. Don plans to amortize the discount once a year at December 31 on a straight-line basis.

---

Definitions:

Disjunction

A logical operation yielding a true value if at least one of its propositions is true.

Biconditional

A logical relationship between two statements where both or neither are true; often phrased as "if and only if".

Component

A part or element of a larger whole, especially a part of a machine or system.

Disjunct

In logic, an element of a disjunction; a proposition that forms one of the alternatives in a disjunction.