On January 1, Year 1, Strang Incorporated issued bonds with a face value of $500,000, a stated rate of interest of 8%, and a 5-year term to maturity. The effective rate of interest was 10%. Interest is payable in cash on June 30 and December 31 of each year. Which of the following statements is true?
A. This bond was issued at a discount, and the annual interest expense is $40,000.
B. This bond was issued at a discount, and each semiannual cash payment is $20,000.
C. This bond was issued at a premium, and the annual interest expense is $40,000.
D. This bond was issued at a premium, and each semiannual cash payment is $25,000.
Answer: B
You might also like to view...
Which of the following accounting methods is used to account for controlling interest investments?
A) equity method B) acquisition method C) consolidation method D) discounted cash flow method
Which of the following community organizing models emphasizes the importance of maintaining close ties with existing community organizations to build a coalition?
a. ACORN b. Industrial Area Foundation c. Pacific Institute for Community Organization d. Direct Action Research and Training Center
Answer the following statement(s) true (T) or false (F)
1. If you can predict y from x with 100% accuracy, you can refer to this as a perfect relationship. 2. As one variable goes down, the other goes down. This describes a positive relationship. 3. The covariance formula differs from the variance formula in that instead of squaring the difference between each score and its mean, we multiply the difference between each x score and its mean with each y score and its mean. 4. If r = -.8, adding a case that is high on x and high on y will result in a stronger correlation. 5. A correlation can be calculated by adding each multiplied pair of z-scores together and dividing by degrees of freedom.
What is iteration management? Name two applications that provide iteration management
What will be an ideal response?