Question: A U.S. company acquired a 4-year $1,000,000 face value corporate bond, on January 1, 2017, the bond annually on December 31, and matures December 31, 2020. Round on answers to the nearest dolor.
Required: a. Assume the investment yields 496. How much did the company pay for the bond?
b. Assume the company categorizes the bond as a hefd-tomoturity investment. Calculate value of the investment and interest revenue for 2017 and 2018 (the second year).