Interest Payments Determine the Interest Payment for the Following Three

question 86

Multiple Choice

Interest Payments Determine the interest payment for the following three bonds: 5.5 percent coupon corporate bond (paid semi-annually) ,6.45 percent coupon Treasury note,and a corporate zero coupon bond maturing in 10 years.(Assume a $1,000 par value.)

• A)$5.50, $6.45, $0, respectively
• B)$27.50, $32.25, $0, respectively
• C)$27.50, $32.25, $100, respectively
• D)$55.00, $64.50, $0, respectively

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Definitions:

Ledger Accounts

Records that summarize all transactions related to a specific account within an accounting system.

Posting

The process of recording financial transactions in the ledger from the journal in accounting.

Journalized Transactions

The formal recording of financial transactions in the accounting journals as part of the double-entry bookkeeping system.

Ledger Accounts

Records within a ledger that show the transaction history and current balance of each account.