The Annual Interest Expense on a $50,000, 15-Year, 10 Percent

question 55

Multiple Choice

The annual interest expense on a $50,000, 15-year, 10 percent bond issued for $45,650 plus accrued interest 6 months after authorization, assuming straight-line amortization, would be

• A) $4,975.
• B) $5,000.
• C) $5,025.
• D) $5,472.

---

Definitions:

Price Reduced

A decrease in the cost at which goods or services are sold, typically to stimulate demand or clear inventory.

Positive Prices

Prices that are above zero, indicating that goods or services have a monetary value that consumers need to pay to acquire them.

Horizontal Intercept

The point at which a curve or line intersects the horizontal axis on a graph, often representing a variable's value when another variable is zero.

Price Of Good 1

The cost at which the first specified good or service is sold in the market.