On Jan of 2005, company purchases $100million of 3 year bond maturing in 2008. They plan to hold until maturity. The bond pays 1% interest in 2005…
On Jan of 2005, company purchases $100million of 3 year bond maturing in 2008. They plan to hold until maturity. The bond pays 1% interest in 2005 and end year for a fair market value of $105million.
Effect on 2005: Pretax Income =
Total assets =
Equity =