Blanding Company Issues $1 000 000 of 8%, 10- Year

question 54

Multiple Choice

Blanding Company issues $1 000 000 of 8%, 10- year debentures at 98 on 28 February 2013. The debenture pays interest on 28 February and 31 August. The market rate of interest on the issue date was 10%. On 31 August 2013, how much cash did Blanding pay out to debenture holders?

• A)$41 000
• B)$40 000
• C)$39 000
• D)$80 000

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Definitions:

Heredity

The genetic transmission of traits from parents to offspring, influencing physical and sometimes behavioral characteristics.

Environment

The sum of all external conditions and influences that affect the life and development of an organism or population.

Behaviour

Behaviour refers to the actions or reactions of an organism or system, usually in response to external stimuli, encompassing a wide range of activities.

Hemispheric

Pertaining to one half of the brain, often regarding the specialized functions of the brain's left or right hemisphere.