On July 1,2016,Sharon Equipment Dealer issued $590,000 of 6% bonds payable that mature in seven years.These bonds were issued at face value and pay interest each June 30 and December 31.Each semiannual interest payment will be higher than the amount of cash paid to the bondholders.

Question

Quizplus · Accepted Answer

The semiannual interest payment will be exactly the amount of cash paid to the bondholders, as the bonds were issued at face value and the interest rate is fixed at 6%.

On July 1,2016,Sharon Equipment Dealer Issued $590,000 of 6% Bonds