A Company Issues 9%,5-Year Bonds with a Par Value of $100,000

question 123

Multiple Choice

A company issues 9%,5-year bonds with a par value of $100,000 on January 1 at a price of $106,160,when the market rate of interest was 8%.The bonds pay interest semiannually.The amount of each semiannual interest payment is:

• A)$9,000.
• B)$8,000.
• C)$4,000.
• D)$4,500.
• E)$0.

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Definitions:

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Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Middle Childhood

A developmental stage that occurs roughly between the ages of 6 to 12 years, characterized by significant growth in social, cognitive, and emotional domains.