PR Corporation Just Issued $1,000 Par 20-Year Bonds

question 136

Multiple Choice

PR Corporation just issued $1,000 par 20-year bonds.The bonds sold for $936 and pay interest semiannually.Investors require a rate of 7.00% on the bonds.What is the amount of the semiannual interest payment on the bonds?

• A) $64.50
• B) $55.00
• C) $32.00
• D) $21.75

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Definitions:

Relevant Information

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Qualitative Characteristic

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The principle that the cost of providing financial information should not outweigh the benefits that the information provides to users.