On April 1,Braintree Corporation issued 10%,10-year,$300,000 bonds at 106.Interest dates are April 1 and October 1.The amount of cash paid out for interest during the current calendar year is:

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Since the bonds were issued on April 1, the first interest payment will be made on October 1. The annual interest payment is 10% of $300,000, which equals $30,000. Since interest is paid semi-annually, the interest payment for the current calendar year (one payment in October) is half of the annual interest, which is $15,000.

On April 1,Braintree Corporation Issued 10%,10-Year,$300,000 Bonds at 106