On January 1, 2012, $1,000,000, 5-Year, 10% Bonds, Are Issued

question 135

Multiple Choice

On January 1, 2012, $1,000,000, 5-year, 10% bonds, are issued for $926,400. The market interest rate is 12%. Interest is paid semi-annually on January 1 and July 1. The discount amortized on July 1, 2012 is

• A)$60,000.
• B)$55,584.
• C)$6,000.
• D)$5,584.

---

Definitions:

Full-line Discount Stores

Retail outlets that offer a wide range of products at lower prices by reducing costs and margins, catering to consumers looking for value deals across various categories.

Broad Variety

A wide range of products or services offered by a business to cater to the diverse preferences of its customers.

Limited Services

Refers to businesses that offer a restricted range of services, often to maintain efficiency and reduce costs.

Extreme-value Retailers

Retail stores that offer a wide variety of merchandise, typically with low prices, targeting consumers looking for extreme deals.