A Company Issued 7%,5-Year Bonds with a Par Value of $100,000.The

question 51

Multiple Choice

A company issued 7%,5-year bonds with a par value of $100,000.The market rate when the bonds were issued was 7.5%.The company received $97,946.80 cash for the bonds.Using the effective interest method,the amount of interest expense for the second semiannual interest period is:

• A)$3,500.00.
• B)$3,679.49.
• C)$3,673.01.
• D)$7,000.00.
• E)$7,346.03.

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Definitions:

Payroll Tax

Duties levied on both employers and employees, usually reflecting a portion of the payroll expenses.

Per-hour Wage

The sum of money an employee receives for working one hour.

Payroll Tax

Fees assessed on employers and their employees, calculated frequently as a fraction of the salaries employees earn.

Labor Market

A marketplace in which employers find workers and workers find jobs, governed by the supply and demand for labor.