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:

Nondisclosure Agreement

A legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties.

Copyright Violation

The infringement of copyright, which occurs when someone uses copyrighted material without permission in a way that violates one or more of the rights granted to the copyright holder.

Provisional Patent

A temporary patent filing that allows an inventor to quickly secure a filing date for their invention while they prepare to submit a full patent application.

Funding

The act of providing financial resources to finance a need, program, or project.