6. Larkins issues a ten-year $2,000,000 bond that has an 8 percent face interest

Question

6. Larkins issues a ten-year $2,000,000 bond that has an 8 percent face interest rate that is paid semi-annually. If the market rate of interest is 10 percent, how much money will Larkins receive? (Points : 1)

$1,516,314

$1,675,677

$1,750,776

$1,805,707

Question 7. Refer to Question 6. What is the interest expense for the first period? (Points : 1)

$37,453.98

$58,678.01

$87,538.80

$102,758.42

Question 8. Refer to Questions 6 and 7. What is the carrying value of the note at the end of the first period? (Points : 1)

$1,354,213.09

$1,520,583.14

$1,758,314.80

$1,895,623.21

Explanation / Answer

6. Larkins issues a ten-year $2,000,000 bond that has an 8 percent face interest

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