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Question 9 Not yet answered Morked out of 200 Flag THIS MULTIPLE CHOICE QUESTION (MCQ) IS BASED ON THE STRAWBERRY COMPANY SCENARIO BELOW: STRAWBERRY Company

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Question 9 Not yet answered Morked out of 200 Flag THIS MULTIPLE CHOICE QUESTION (MCQ) IS BASED ON THE STRAWBERRY COMPANY SCENARIO BELOW: STRAWBERRY Company purchased the bonds of another company on 1 January 2019. The following intormation about the Debt Investment (ie, the purchased bonds) is available: Face Value (le, Nominal Value) = $2,000,000; stated rate (le, coupon or Nominal rate): 8% per year (i.e, per annum) Effective rate (ie. Yield): 6% per year (i.e., per annum) - Life: 2 yoars Interest: Semi-Annual on 30 June and 31 December The Present Value (PV) factor and Annuity Factor for a range of interest rates for N=4 are as follows: question Rate PV Factor Annuity Factor (Table 6-2) (Table 6-4) 3% 0.889 3.72 4% 0.855 3.63 5% 0.823 3.55 6% 0.747 3.47 (note: the relevant exact values from the above table must be utilized in your calculation MCQ The Carrying Amount of the Debt Investment at Amortized Cost on 1 July 2020 is how much? (round to two decimal places in all calculations) Select one a. $1951,147.68 b. $1942169.00 c. $2,041,437.12 d. $2,020,792.16 e None of these answers

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