2013 Amortization: $3,000,000 ÷ 10 = $300,000 X 9/12 =

question 40

Essay

2013 amortization: $3,000,000 ÷ 10 = $300,000 x 9/12 = $225,000
2.

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Definitions:

Annual Coupon

The interest payment made to bondholders once a year, based on the bond's face value.

Yield To Maturity

The complete return expected from holding a bond until it reaches its maturity.

Market Price

The price for an asset or service in the market at the present time.

Interest Rate Risk

The risk that changes in interest rates will negatively affect the value of an investment, especially those with fixed interest rates.