On January 2,2013,Barham Corporation Issued Ten-Year Bonds Payable with a Face

question 61

Multiple Choice

On January 2,2013,Barham Corporation issued ten-year bonds payable with a face value of $400,000 and a face interest rate of 9 percent.The bonds were issued to yield a market interest rate of 10 percent.Interest is payable semi-annually on January 2 and July 1.In calculating the present value of the bond issue on January 2,2013,

• A) the 9 percent rate will be used to calculate the present value of the face amount and the present value of the periodic interest payments.
• B) a 5 percent rate will be used to calculate the present value of the face amount and the present value of the periodic interest payments.
• C) the 10 percent rate will be used to calculate the present value of the face amount and the present value of the periodic interest payments.
• D) the 10 percent rate will be used to calculate the present value of the face amount and a 5 percent rate will be used to calculate the present value of the periodic interest payments.

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Definitions:

Slavery First Hand

The direct experience or personal witnessing of the conditions and realities of slavery, typically by those who were enslaved.

Newspaper

A publication issued at regular intervals, usually daily or weekly, containing news, opinion pieces, advertisements, and other items of general interest.

Full Emancipation

The act or process of freeing someone from legal, social, or political restrictions, most commonly used in the context of abolishing slavery.

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A social movement aimed at reducing or banning the consumption of alcoholic beverages.