On July 1, 20X6, Dahl's Deli paid $465,000 to purchase $450,000 of corporate bonds that mature in
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On July 1, 20X6, Dahl's Deli paid $465,000 to purchase $450,000 of corporate bonds that mature in five years. The bonds pay interest semi-annually at 6.5% per year on June 30 and December 31. The company plans to hold the bonds until they mature for the purpose of collecting contractual cash flows.
What is the total interest income that Dahl's Deli will recognize on these bonds for the two years to June 30, 20X8? Calculations for interest should be rounded to three decimal places (for example, 3.125%).
Is the answer 58,500?
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