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

question 40

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. 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:

Disaster Relief Funds

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A situation in financial systems where depositors engage in riskier behaviors because they know their deposits are protected, for instance, by government insurance.

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A sector of the financial services industry that specializes in accepting savings deposits and making mortgage and other loans.