Saved Help Seve & Ex Adonis Corporation issued 10-year, 8% bonds with a par valu

Question

Saved Help Seve & Ex Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000 Interest is paid semiannually the mark received $206.948 in cash proceeds. Which of the following statements is true? et rate on the issue date was 75% Adonis Multiple Choice Adonits must pay $200,000 at maturity and no Interest payments Adonis must pay $206.948 at maturity and no interest payments Adonis must pby $200.000 at maturty plus 20 interest payments of $8.000 each Adonis must pay $206.943 at maturity plus 20 interest payments of $8,000 esch Adonis must pby $200000 at maturity plus 20 imterest payments of $7500 escn to search 0.

Explanation / Answer

The Option #3 is correct.

The accoun that will be paid will include:

-- 200000 x 8% x 6/12 = $ 8,000 of interest payment for 20 payments (10 year term x 2 payments each year)

--- 200000 of the face value of bonds payable.

Hence, option #3: must pay $200000 at maturity + 20 interet payment of $ 8000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.