A company issues 10%, 5-year bonds with a par value of $120,000 on January 1 at a price of $124,748, when the market rate of interest was 9%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:
A. $5400.
B. $10,800.
C. $12,000.
D. $6000.
E. $0.
Answer: D
You might also like to view...
Direct materials cost is a fixed cost because it always occurs in a production process
Indicate whether the statement is true or false
An organization's theoretical operating capacity is the level at which its management expects to operate during a normal business environment
Indicate whether the statement is true or false
Explain how legal protection for unions and union activity in the U.S. has evolved from the pre-1900s to the present. In your opinion, are the laws that are currently in place sufficient to guarantee workers have adequate voice and equity in the workplace?
What will be an ideal response?
Which sentence is correct?
A) Although the product was advertised as having less calories, it still contained too much sugar. B) Our goal is to provide excellent customer service, but budget restraints have forced us to hire less customer service technicians. C) Because of the high interest rates, fewer homes are being built.