The Amazing Widget Company Issues $500 000 of 6%, 10-

question 55

Multiple Choice

The Amazing Widget Company issues $500 000 of 6%, 10- year debentures at 103 on 31 March 2013. The debenture pays interest on 31 March and 30 September. The market rate of interest on the issue date was 4%. On 30 September 2013, how much cash did the company pay out to debenture holders?

• A)$14 250
• B)$7 500
• C)$15 000
• D)$30 000

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