A Company Issues 9%,20-Year Bonds with a Par Value of $750,000.The

question 91

Multiple Choice

A company issues 9%,20-year bonds with a par value of $750,000.The current market rate is 8%.The amount of interest owed to the bondholders for each semiannual interest payment is.

• A)$ 60,000.
• B)$ 33,750.
• C)$ 67,500.
• D)$ 30,000.
• E)$ 375,000.

---

Definitions:

Bonds Payable

Long-term liabilities representing money a company owes to bondholders.