A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000. At the end of year 20, with

Question

2 years ago

9

A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000. At the end of year 20, with

10 years remaining until maturity, the bond had a fair value of $10,200. Taking into account the discount at which the government initially purchased the bond, its amortized cost was $9,760. Assuming that it held the bond in a governmental fund, the government should report the bond at a value of

Business

1 answer:

astraxan [27] · Answer 1 · 2022-12-07T09:40:47+03:00

Answer:

$10,200

Explanation:

Based on the information given Assume that it held the bond in a governmental fund, the GOVERNMENT SHOULD REPORT THE BOND AT A VALUE OF THE AMOUNT OF $10,200 reason been that we were told that the bond had a FAIR VALUE of the amount of $10,200.

Therefore the government should report the bond at a value of $10,200.