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ACC 537 Week 5 Textbook Problem P17 7 Wildcat Company
Distinguish between a debt security and equity security
What purpose does the variety in bond features ( types and characteristics ) serve ?
What is meant by " Yield to Maturity "?
Identify and explain the three types of classifications for investments in debt securities .
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ACC 537 Week 5 Textbook Problem P17 7 Wildcat Company

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P17-7 ( Available-for-Sale and Held-to-Maturity Debt Securities Entries ) The following information relates to the debt securities investments of Wildcat Company .
1 . On February 1 , the company purchased 10 % bonds of Gibbons Co . having a par value of $ 300,000 at 100 plus accrued interest . Interest is payable April 1 and October 1 .
2 . On April 1 , semiannual interest is received .