On February 1,2016,Lynda Brown,proud Mother of Newborn Daughter Goldie,purchased $600,000

question 96

Essay

On February 1,2016,Lynda Brown,proud mother of newborn daughter Goldie,purchased $600,000 in zero-coupon bonds that mature on February 1,2036.The bonds pay no interest during the period of time they are outstanding.The interest rate for such borrowings is at 12%.
Required: Calculate the price Lynda paid for the bonds.

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Definitions:

Compensation of Employees

All forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Human Capital

The collective skills, knowledge, and experience of an individual or workforce, viewed as an asset.

Proprietors

Owners of a business or holders of property.

Production Input

Any resource used in the creation of goods or services, such as labor, raw materials, and capital.