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.

---

Definitions:

Methamphetamine

A powerful, highly addictive stimulant drug that affects the central nervous system, known for its euphoric effect.

Low Birth Weight

Refers to babies born weighing less than 2,500 grams or 5 pounds, 8 ounces, and is associated with various health risks.

Teratogen

Any agent that can cause developmental malformations (birth defects) or abnormalities in a developing fetus when exposure occurs during pregnancy.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.