Dot Company issued $200,000 of bonds on January 1,2014 with interest payable each year.The bonds had a stated rate of 8%.The bonds were set up as floating-rate debt with the rated pegged to LIBOR plus 3%.Interest expense for year one if LIBOR is 7% will be which one of the following?
A) $6,000
B) $14,000
C) $16,000
D) $20,000
Correct Answer:
Verified
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