The June Bug Has a $270,000 Bond Issue Outstanding

question 95

Multiple Choice

The June Bug has a $270,000 bond issue outstanding.These bonds have a 7.5 percent coupon,pay interest semiannually,and have a current market price equal to 98.6 percent of face value.The tax rate is 39 percent.What is the amount of the annual interest tax shield?

• A)$3,948.75
• B)$4,112.60
• C)$5,311.22
• D)$7,897.50
• E)$8,225.20

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Definitions:

Equality

The state or quality of being equal, especially in status, rights, or opportunities.

Men and Women

Refers to the two primary genders within the human species, each with its own biological and social attributes and roles.

California Gold Rush

A period of migration to California following the discovery of gold in 1848, significantly impacting the state's development and demographics.

1849

Refers to a specific year in the 19th century, notable for the start of the California Gold Rush in the United States.