The ABC Corporation issues a $1,000 bond, with an interest rate of 10%, and a maturity date of 2025. This creates a liability for the ABC Corporation to pay the bondholder:
A) $100 interest per year and $1,000 in the year 2025.
B) 10% of the selling price of the bond.
C) an interest payment equal to the dividend payment distributed to the common stockholders.
D) $1,100 annually until the year 2025.
Correct Answer:
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