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The Amazing Widget Company Issues $500,000 of 6%,10-Year Bonds at 103

Question 114

Multiple Choice

The Amazing Widget Company issues $500,000 of 6%,10-year bonds at 103 on March 31,2013.The bond pays interest on March 31 and September 30.The market rate of interest on the issuance date was 4%.On September 30,2013,how much cash did the company pay out to bondholders?


A) $14,250
B) $30,000
C) $15,000
D) $7,500

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