Bonds in the amount of $100,000 and a life of 10 years were issued by the Gordman Company.If the face rate is 6% and interest is paid semiannually,what would be the total amount of interest paid over the life of the bonds?

Question

Quizplus · Accepted Answer

The total interest paid is calculated as: $100,000 * 6% * 10 years = $60,000. Since interest is paid semiannually, the annual interest rate is applied over the 10-year period.

Bonds in the Amount of $100,000 and a Life of 10