plus accrued interest of $1,200. The bonds pay interest annually on December 31. Aug. 31. Sold $40,000 of Smoke Bay bonds at their face amount plus accrued interest of $400. The bonds were purchased on April 1. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y6 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. May 31. Sold the remaining Smoke Bay bonds at their face amount plus accrued interest of $300. Aug. 31. Received the annual interest payment on the Geotherma Co. bonds. Dec. 31. Received the annual interest payment on the Smoke Bay bonds. 20Y7 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y8 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y9 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y10 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y11 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y12 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y13 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y14 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y15 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y16 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y17 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y18 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y19 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds. 20Y20 Feb. 1. Received the semiannual interest payment on the Smoke Bay bonds. Dec. 31. Received the annual interest payment on the Geotherma Co. bonds.
Added by Julian M.
Step 1
The bonds were purchased on April 1 and the interest is paid annually on December 31. Therefore, the bonds were held for 9 months (April to December). The annual interest payment is $400, so the monthly interest payment can be calculated as $400/12 = $33.33. The Show more…
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