At the beginning of his current tax year, Eric bought a corporate bond with a maturity value of $26,000 from the secondary market for $20,600. The bond has a stated annual interest rate of 6 percent payable on June 30 and December 31, and it matures in five years on December 31. Absent any special tax elections, how much interest income will Eric report from the bond this year and in the year the bond matures?

Eric will report an Interest Income of $1560

Explanation:

Interest Rate (r) = 6%

Marturity Value = 26000

Interest income for this year

Interest income (6 months) = 26000 x (0.06/2) = 780

Interest income for this year = 780 x 2 = 1560

Eric will report an interest income of $1560 this year.

Interest Income in the final year (Maturity year)

Bond Interest Payments are constant each year for up until the Bond Matures. Eric will still earn an interest of $ 1560 in the final year

answer; the above statement is (true);

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.