Winrow Company Received Proceeds of $565,500 on 10-Year, 8% Bonds

question 215

Multiple Choice

Winrow Company received proceeds of $565,500 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 101. Winrow uses the straight-line method of amortization. What is the amount of interest Winrow must pay the bondholders in 2013?

• A) $45,240
• B) $48,000
• C) $51,450
• D) $44,550

Analyze the historical context and political actors at the founding of the United States.

Describe the role of elites in democratic and political systems.

Understand the etymology of the word democracy and its implications for democratic governance.

Understand the basics and applications of operant conditioning in behavior modification.

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Definitions:

Bank Draft

A check drawn by one bank on another bank in which it has funds on deposit in favor of a third person, the payee. Also called teller’s check.

Assigned

The act of transferring rights or duties under a contract or agreement from one party to another.

Rights

Entitlements or freedoms that are guaranteed by law or social norms.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, providing a way to eliminate or repay some or all debt under the protection of the bankruptcy court.