A corporation issued $150,000 of 10-year bonds at the stated rate of 8%, with interest payable semiannually. How much cash will the bond investors receive at the end of the first interest period?

Question

Quizplus · Accepted Answer

The bond investors will receive two semiannual interest payments, each equal to (0.08/2) x $150,000 =$6,000. Therefore, at the end of the first interest period, the bond investors will receive $6,000.

A Corporation Issued $150,000 of 10-Year Bonds at the Stated