A Company Issues 9% Bonds with a Par Value of $100,000

question 121

Multiple Choice

A company issues 9% bonds with a par value of $100,000 at par on April 1,which is 4 months after the most recent interest date.The cash received for accrued interest on April 1 by the bond issuer is:

• A)$750.
• B)$5,250.
• C)$1,500.
• D)$3,000.
• E)$6,000.