A Company Issues at Par 7% Bonds with a Par

question 22

Multiple Choice

A company issues at par 7% bonds with a par value of $500,000 on June 1,which is 5 months after the most recent interest date.How much total cash interest is received on May 1 by the bond issuer?

• A)$0
• B)$2,916.66
• C)$100,000.00
• D)$14,583.33
• E)$35,000.00

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Definitions:

Migrating

The process of moving from one region or habitat to another, often seasonally, as seen in many animal species.

Electromagnetic

Pertaining to or emanating from the interaction of electric and magnetic fields, referring to the full spectrum of waves from radio to gamma rays.

Electroreceptors

Specialized cells or organs in some aquatic animals that allow them to detect electric fields in their environment, aiding in navigation, hunting, and communication.

Mechanoreceptors

Sensory receptors in the body that respond to mechanical pressure or distortion, crucial for senses like touch and hearing.