If $800000 6% bonds are issued on January 1 and pay interest annually the amount of interest paid the following January 1 will be $48000.

Name: If $800000 6% bonds are issued on January 1 and pay interest annually the amount of interest paid the following January 1 will be $48000.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

Since the bonds are 6% and the face value is $800000, the annual interest payment would be 0.06 x $800000 = $48000. Therefore, the amount of interest paid the following January 1 would indeed be $48000.

If $800000 6% Bonds Are Issued on January 1 and Pay