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Homework answers / question archive / QUESTION 13 ud Company mest 10 year bonds with a par value of 001
QUESTION 13 ud Company mest 10 year bonds with a par value of 001.000.000 mat pay interest semiannually. The amount paid to the bondholders for each semiannual interest 40.000 DOO COD1000 0.000000
Answer: A. 40,000
Explanation:
Interest Payable to bondholders on semi-annual basis = Par value of bond x Interest % p.a. x (6 month/12 month)
= 1,000,000 x 8% x (6 month/12 month)
= 40,000
