A Company Issues 8% Bonds with a Par Value of $40,000

question 50

Multiple Choice

A company issues 8% bonds with a par value of $40,000 at par on January 1. The market rate on the date of issuance was 7%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:

• A) $3,200.
• B) $1,400.
• C) $0.
• D) $1,600.
• E) $2,800.

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Definitions:

Ejectment

The common law name given to the lawsuit brought by a landlord to have a tenant evicted from the premises.

Unlawful Detainer

A legal proceeding that provides landlords with a quick method of evicting a tenant. Also called summary process, summary ejectment, forcible entry and detainer, and dispossessory warrant proceedings.

Common Area

A space within a building or property that is available for use by all tenants or occupants, such as lobbies, hallways, and shared facilities.

Joint Tenants

Two or more persons who own property where the right of any deceased owner is automatically transferred to other surviving owners.