1. Holiday Brands issued $35 million of 8%, 30-year bonds for $32.5 million. Wha

Question

1. Holiday Brands issued $35 million of 8%, 30-year bonds for $32.5 million. What is the amount of interest that Holiday will pay semiannually to bondholders? (Enter your answers in whole dollars.)

Face amount (X) Annnual Rate% (x) Fraction Year = Cash Intrest Paid

1. Holiday Brands issued $35 million of 8%, 30-year bonds for $32.5 million. What is the amount of interest that Holiday will pay semiannually to bondholders? (Enter your answers in whole dollars.)

Face amount (X) Annnual Rate% (x) Fraction Year = Cash Intrest Paid

Explanation / Answer

Face amount (X) Annnual Rate% (x) Fraction Year = Cash Intrest Paid

Face amount = $35 million

Annnual Rate% = 8%

Fraction Year = 1/2 = 0.5

Amount of interest that Holiday will pay semiannually = 35*8%*0.5 = $1.4 million

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

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