The Lakeside Company issues $518,000 of its 10%, 10-year bonds at 106 on March 31, 2019. The bonds pay interest on March 31 and September 30. On September 30, 2019, how much cash did the company pay to the bondholders?

A) $2590
B) $51,800
C) $25,900
D) $12,950


C) $25,900
Explanation: Interest Paid = $518,000 × 10% × 6/12 = $25,900

Business

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