A Company Issued 10-Year,8% Bonds with a Face Value of $200,000.Interest

question 54

Multiple Choice

A company issued 10-year,8% bonds with a face value of $200,000.Interest is paid annually.The market rate on the issue date was 7.5% and the company received $206,948 in cash proceeds.Which of the following statements is correct?

• A)The company must pay $184,000 at maturity plus $16,000 in interest each year for 10 years.
• B)The company must pay $206,948 at maturity plus $15,000 in interest each year for 10 years.
• C)The company must pay $200,000 at maturity plus $16,000 in interest each year for 10 years.
• D)The company must pay $200,000 at maturity plus $15,000 in interest each year for 10 years.

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Definitions:

Intentional Tort

A wrongful act done deliberately with the intention of causing harm or damage, leading to civil legal liability.

Conversion

The act of changing something from one form or use to another, in legal terms, often referring to unauthorized possession or use of property.

Automobile

A road vehicle, typically with four wheels, powered by an internal combustion engine or electric motor, designed to transport people.

Legal Action

A formal proceeding in which a case is brought before a court for decision-making regarding an issue or dispute.