On January 1, 2021, purchased $100,000 of Anand Company bonds at face value. The Anand bonds pay 6% coupon rate. On the purchase date, the market interest rate was 6% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rupar accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. On June 30, 2021, Rupar would record a credit to interest revenue of:

$3,000

Explanation:

On June 30, 2021, Rupar would have held the bond for 6 months. The coupon rate is an annual figure and so must be translated to a semi annual figure.

To do that simy divide by 2.

= 6% /2

= 3%.

The bond is paid interest on at face value as well.

Therefore the interest on June 30 is,

= 100,000 * 3%

= $3,000

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

a) both were commissioned explorers