A Company Issued 10%,five-Year Bonds with a Par Value of $400,000.The

question 121

Multiple Choice

A company issued 10%,five-year bonds with a par value of $400,000.The market rate when the bonds were issued was 8%.The company received $432,458 cash for the bonds.Using the effective interest method,the amount of interest expense for the first semiannual interest period is:

• A)$16,000.00
• B)$20,000.00
• C)$4,324.58
• D)$17,298.32
• E)$16,754.20

---

Definitions:

Proportion Of Successes

A statistical measure that calculates the ratio of successes in a set of observations to the total number of observations.

Z Test

Utilized to check for differences in the means of two populations, this statistical test requires that variances are known and that there is a considerable sample size.

Group 1

Typically refers to the first group or category in a study or classification system.

Sample Survey

A method used to gather information and data from a subset of a population to make inferences about the whole population without examining every individual.