Tyson Construction Inc.
Use the information provided for Tyson Construction Inc. to answer the following question(s) using the effective interest method.
On January 2, 2012, Tyson Construction Inc. issued $1,000,000, 10-year bonds for $1,135,915. The bonds pay interest on June 30 and December 31. The stated rate is 10% and the market rate is 8%.
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Refer to the information provided for Tyson Construction Inc. Determine the cash interest to be paid on June 30, 2012.
A) $50,000
B) $40,000
C) $42,400
D) $46,000
Correct Answer:
Verified
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