PQR Limited invested 10 million in government bonds with coupon rate of 8% and maturity of 10
Question:
PQR Limited invested ₹10 million in government bonds with coupon rate of 8% and maturity of 10 years. After one year, the fair value of the bonds has increased to ₹10.5 million. How would you classify the bonds and treat the increase in fair value if:
1. The bonds are intended to be held for trading.
2. The bond will be held till maturity.
3. The company intends to sell the bonds only if the bond price significantly appreciates.
4. The company intends to sell the bonds after three years to raise cash for replacement of a machine.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
The classification of investments and treatment of fair v...View the full answer
Answered By
Deepak Pal
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
