A company issues 8% bonds with a par value of $40,000 at par on January 1. The market rate on the date of issuance was 7%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:

A. $1,400.
B. $0.
C. $1,600.
D. $3,200.
E. $2,800.


Answer: C

Business

You might also like to view...

The breakeven point is the level of activity at which fixed costs are recovered

Indicate whether the statement is true or false

Business

Which is not a way to view or characterize authentic leadership?

A. intrapersonal B. interpersonal C. developmental D. fundamental

Business

Review your purpose for collecting and ______________ the information

a. analyzing b. summarizing c. distributing d. disproving

Business

The Occupational Safety and Health Act does not apply to government employers

Indicate whether the statement is true or false

Business