Bond X and bond Y are both issued by the same company. Each of the bonds has a maturity value of $100,000 and each pays interest at 8%. The current market rate of interest is 8% for each. Bond X matures in 7 years while bond Y matures in 10 years. Which of the following is correct?
Both bonds will sell for the same amount.
Both bonds will sell for more than $100,000.
Bond X will sell for more than bond Y.
Bond Y will sell for more than bond X.
When a lease qualifies as a capital lease, what is the cost basis of the asset acquired?