Tyson Construction Inc

question 52

Multiple Choice

Tyson Construction Inc.
Use the information provided for Tyson Construction Inc. to answer the following question(s) using the effective interest method.
On January 2, 2012, Tyson Construction Inc. issued $1,000,000, 10-year bonds for $1,135,915. The bonds pay interest on June 30 and December 31. The stated rate is 10% and the market rate is 8%.
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Refer to the information provided for Tyson Construction Inc. Determine the cash interest to be paid on June 30, 2012.

• A) $50,000
• B) $40,000
• C) $42,400
• D) $46,000

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Definitions:

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A physical and psychological dependency on nicotine, a stimulating and addictive substance found in tobacco.

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The mixture of gases and particles released when tobacco is burned, containing harmful substances linked to various diseases.