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on january 1. 2021 a company acquired machinery and issued a noninterest bearing note: face amount $825,000. what are the total number of interest periods

User Kosta
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Final answer:

The total number of interest periods for the noninterest bearing note cannot be determined without additional details about the note's term or maturity date. The details provided about firm payments and a corporate bond issuance do not contribute to answering this specific question.

Step-by-step explanation:

To determine the total number of interest periods for a noninterest bearing note, we need information about the note's maturity date, which is not provided in the question. Usually, the interest periods could be monthly, quarterly, semi-annually, or annually, and they represent the frequency with which the interest would theoretically be compounded if the note had an explicit interest rate. Without additional information on the term of the note or the effective interest rate, a direct answer cannot be provided.

The data provided regarding payments from the firm are separate from the information about the machinery acquisition and the issued note. These payments seem more relevant to a problem involving present and future value calculations rather than directly answering the question about interest periods. Similarly, the information about Ford Motor Company's bond issuance pertains to a specific example of an interest-bearing bond, again not directly related to the initial query about the machinery acquisition note.

User Thomas Ferro
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