The Amazing Widget Company Issues $500,000 of 6%,10-Year Bonds at 103

question 17

Multiple Choice

The Amazing Widget Company issues $500,000 of 6%,10-year bonds at 103 on March 31,2013.The bond pays interest on March 31 and September 30.The market rate of interest on the issuance date was 4%.On September 30,2013,how much cash did the company pay out to bondholders?

• A) $14,250
• B) $30,000
• C) $15,000
• D) $7,500

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Definitions:

Cesarean Deliveries

A surgical procedure used to deliver a baby through incisions in the abdomen and uterus, often undertaken when a vaginal delivery would pose a risk to the mother or baby.

Fetal Abnormalities

Deviations from the normal development in the fetus, which can be structural, functional, or genetic, and detected before birth through various screening methods.

Amniocentesis

A medical procedure used in prenatal diagnosis, involving the extraction of a small amount of amniotic fluid for genetic and chromosome testing.

Chorionic Villus Sampling

A prenatal test where samples of the placental tissue are taken for genetic testing to check for abnormalities in the fetus.