Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.
-What is the stated annual rate of interest on the bonds?

Question

Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.  
-What is the stated annual rate of interest on the bonds?

Quizplus · Accepted Answer

($400,000 / $10,000,000) × 2 = 8%

Prescott Corporation Issued Ten Thousand $1,000 Bonds on January 1