On January 1, 20X7, Tio Rinto Aluminum Co $\begin{array} { lr r } & \text { Issue price } & \text { Interest expense } \\\end{array}$

question 60

Multiple Choice

On January 1, 20X7, Tio Rinto Aluminum Co. issued a $500,000, 6%, 8-year bond with interest payable semi-annually at par. The issuance price of the bond and the first period's interest expense are closest to
$\begin{array} { lr r } & \text { Issue price } & \text { Interest expense } \\\end{array}$
a) $\begin{array} { lr r } & \$ 500,000 & \$ 15,000 \\\end{array}$
b) $\begin{array} { lr r } & \$ 500,000 & \$ 30,000 \\\end{array}$
c) $\begin{array} { lr r } & \$ 470,000 & \$ 15,000 \\\end{array}$
d) $\begin{array} { lr r } & \$ 470,000 & \$ 30,000 \\\end{array}$

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Definitions:

Algorithm

An algorithm is a detailed, step-by-step procedure or formula for solving a problem or completing a task, often used in computing and mathematical processes.

Subgoal

A specific, intermediate goal that forms part of a larger goal, making complex tasks more manageable.

Heuristic

A shortcut or rule of thumb that helps in problem-solving and decision-making but does not guarantee a perfect answer.

Fixation

An obsessive focus or attachment to a person, object, or concept, potentially interfering with the ability to progress through developmental stages.