A Company Issued 9

question 83

Essay

A company issued 9.2%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest?

---

Definitions:

Poverty Levels

Indicators that measure the economic status of individuals or populations, often defined by income thresholds below which persons are considered to be living in poverty.

False Imprisonment

The unlawful restraint of a person's freedom to move, without consent or legal justification.

Civic Center

A designated area in a city that is focused on civic activities and may include government buildings, theaters, and sports facilities.

Loitering

The act of remaining in a particular public place for a protracted time without any apparent purpose, often considered suspicious.