A Company Issued 10-Year,8% Bonds with a Face Value of $200,000.Interest

question 123

Multiple Choice

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

• A)The company must pay $184,000 at maturity plus $16,000 in interest each year for 10 years.
• B)The company must pay $206,948 at maturity plus $15,000 in interest each year for 10 years.
• C)The company must pay $200,000 at maturity plus $16,000 in interest each year for 10 years.
• D)The company must pay $200,000 at maturity plus $15,000 in interest each year for 10 years.

---

Definitions:

Theory

A systematic set of ideas intended to explain facts or phenomena, often used as a basis for further investigation or to guide decision-making.

Moral Justice

The principles or ideals of fairness, equity, and righteousness that guide individuals and societies in determining right from wrong.

Division of Labor

Division of labor is the assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Social Nature

Refers to the intrinsic aspects of humans that are shaped and influenced by societal interactions and cultural norms.