Blanding Company Issues $1,000,000 of 8%, 10-Year Bonds at 98

question 34

Multiple Choice

Blanding Company issues $1,000,000 of 8%, 10-year bonds at 98 on February 28, 2015. The bond pays interest on February 28 and August 31. On August 31, 2015, how much cash did Blanding pay out to bondholders?

• A)$41,000
• B)$40,000
• C)$80,000
• D)$39,000

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