INTERNATIONAL ACCOUNTING (LL)-W/CONNECT
5th Edition
ISBN: 9781260696219
Author: Doupnik
Publisher: MCG
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Chapter 5, Problem 11EP
Siam Financial Corp. (SFC) actively trades bonds but chooses not to hedge any of its open positions. At the beginning of the year, SFC purchased 50 million baht of Thai government bonds paying 4 percent per annum. The year-end fair market
- a. Nothing, because bonds are always carried at cost.
- b. 1 million baht.
- c. 2 million baht.
- d. 3 million baht.
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A Multi-national Corporation sold an issue of bonds in the Pakistani bondsmarket. The main features of these bonds were as follow:a) Maturity period = 10 Yearsb) Face value = Rs.1,000c) Coupon rate = 10% per annumd) Interest is paid semi-annuallyRequired:1) Two years after the bonds were issued, thegoing rate of interest on bondssuch as these fell to6% per annum. At what price would the bonds sell inthe market?
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A Multi-national Corporation sold an issue of bonds in the Pakistani bonds market. The main features of these bonds were as follow:a) Maturity period = 10 Yearsb) Face value = Rs.1,000c) Coupon rate = 10% per annumd) Interest is paid semi-annuallyRequired:1) Two years after the bonds were issued, thegoing rate of interest on bonds such as these fell to 6% per annum. At what price would the bonds sell in the market?
Chapter 5 Solutions
INTERNATIONAL ACCOUNTING (LL)-W/CONNECT
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - 3. What is a constructive obligation?
Ch. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
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