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Chapter 13: Q3Q (page 658)

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

Short Answer

Expert verified

Answer:

The cost of the long term is the cost of acquisition and brokerage fees, etc.

Step by step solution

01

Definition of long-term investment

Those investments whose period of maturity is more than 12 months is known as a long-term investment.

02

Step 2:

It is clear from the word cost incurred during the purchase of that investment is known as the cost of long-term bonds. It includes all the costs like cost of acquisition, payment of brokerage fee, and other expenses. In this way, cost helps investors to know the actual cost of the

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Most popular questions from this chapter

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