Use the following to answer questions
Lopez Plastics Co.(LPC)issued callable bonds on January 1,2016.LPC's accountant has projected the following amortization schedule from issuance until maturity:

-What is the annual stated interest rate on the bonds?
A)3.5%
B)6%
C)7%
D)None of the answer choices is correct.

Question

Use the following to answer questions 
Lopez Plastics Co.(LPC)issued callable bonds on January 1,2016.LPC's accountant has projected the following amortization schedule from issuance until maturity:
 
-What is the annual stated interest rate on the bonds?
A)3.5% 
B)6% 
C)7% 
D)None of the answer choices is correct.

Quizplus · Accepted Answer

The annual stated interest rate on the bonds is stated as 7% on every payment date in the table.

Use the Following to Answer Questions