Miss Jan De Jong is orderly, neat, fairly quiet, and shy. Sh…

Miss Jan De Jong is orderly, neat, fairly quiet, and shy. She enjoys reading in her spare time and belongs to a social club that includes three librarians, nine real estate agents, and eight social workers. A tendency to conclude that Jan must be one of the three librarians would illustrate the powerful influence of

On 1/1/2009 ABC, Inc. purchases a 5-year $1,000,000, 6% bond…

On 1/1/2009 ABC, Inc. purchases a 5-year $1,000,000, 6% bond requiring semiannual interest payments from XYZ, Inc.  Interest payments are scheduled to occur on 6/30 and 12/31 each year.  They classify this investment as “Trading”.  ABC, Inc. pays an amount for the bond that creates an effective yield of 5%. Assuming that ABC, Inc. prepares its financial statements (balance sheet, income statement, etc.) on 12/31 each year, and further that the market value of the XYZ, Inc. bonds is $980,000 on 12/31/2009. What will be the value that ABC, Inc. will report for the XYZ Bond Investment on their 12/31/2009 balance sheet?