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"if intervale railway invests​ $100,000 in​ 5% bonds at face value that the company intends to hold until the bond maturity​ date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a"

User Oggmonster
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1 Answer

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Given:

Investment worth = $100,000

Bond Percentage: 5% at face value that the company intends to hold until the bond maturity date

Therefore, the interest revenue recognized when each semiannual interest payment is received would be recorded as a credit to interest revenue that is equal to $2,500

Solution: Interest Revenue = $100,000*0.05

= $5,000 Annually

= $5,000/2

= $2,500 semi-annually





User Benjamin Bannier
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