Question

What is the cost of a long-term investment in bonds?

What is the cost of a long-term investment in bonds?

Homework Answers

Answer #1

Cost of long term investment in bond

Total amount to acquire bond

+ any fees paid for acquisition

+ any commission/ have been paid for it

+interest on loan taken for acquiring bond up to date of acqusition will be include in it

+ If an investment is acquired,or partly acquired,by the issue of shares or other securities, the acquisition cost should be the fair value of the securities issued (which in appropriate cases may be indicated by the issue price as determined by statutory authorities).

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