On March 1,2012,WC Issued 10% Stated Interest Rate,10 Year Debentures

question 40

Multiple Choice

On March 1,2012,WC issued 10% stated interest rate,10 year debentures dated January 1,2012,in the face amount of $1,000,000,with interest payable on January 1 and July 1.The debentures were sold to yield 12% plus accrued interest.How much should WC debit to cash on March 1,2012?

• A) $901,967
• B) $903,003
• C) $1,016,667
• D) $1,033,333
• E) $902,336

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Definitions:

Increased Demand

Refers to a situation where there's a higher desire or need for a particular product or service, often leading to higher prices if supply does not match the surge.

Price Ceiling

A legally established maximum price that can be charged for a good or service.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a specific price.

Market Equilibrium

A situation in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers.