Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adonis received $206,948 in cash proceeds. Which of the following statements is true?

A. Adonis must pay $200,000 at maturity plus 20 interest payments of $8,000 each.
B. Adonis must pay $206,948 at maturity and no interest payments.
C. Adonis must pay $200,000 at maturity and no interest payments.
D. Adonis must pay $200,000 at maturity plus 20 interest payments of $7,500 each.
E. Adonis must pay $206,948 at maturity plus 20 interest payments of $8,000 each.


Answer: A

Business

You might also like to view...

Describe the basic premise of motivational research and how it might be conducted

What will be an ideal response?

Business

A choice-of-law clause specifies which law will apply in the event of a dispute and is a good idea to include.

Answer the following statement true (T) or false (F)

Business

A negotiable instrument may be negotiated by

a. indorsement and delivery. b. delivery alone. c. either indorsement and delivery or delivery alone. d. none of these.

Business

Isabella is assigned to create a training program for newly hired mortgage loan officers. She has the ____ to complete this assignment.

A. authority B. delegation C. network D. responsibility E. accountability

Business