Question

On October 1, 2022, Gede, Inc. purchased $958,000 of 11 year, semi-annual, 8% bands. Gede, Inc. paid $1,030,651 for the bonds, which the finace team intends to include in their trading portfolio. The market rate for the bonds was 7%. If the market price of the bonds was $989.000 an December 31, 2022, what will be the total effect of the bonds on Gede, Inc's 2022 income statement? O $22,491 net decrease to net income O $21,367 net decrease to net income O $36,073 net incease to net income O $18,036 net incease to net income

Answer 1

On October 1, 2022, Gede, Inc. purchased $958,000 of 11 year, semi-annual, 8% bands. Gede, Inc. paid $1,030,651 for the bonds, which the finace team intends to include in their trading portfolio. The market rate for the bonds was 7%. If the market price of the bonds was $989.000 an December 31, 2022, what will be the total effect of the bonds on Gede, Inc's 2022 income statement? O $22,491 net decrease to net income O $21,367 net decrease to net income O $36,073 net incease to net income O $18,036 net incease to net income

Step-by-step explanation: