$5.917.81 E) 10. Hudson Corp. sells $300,000 of bonds semiannually. The bonds we

Question

$5.917.81 E) 10. Hudson Corp. sells $300,000 of bonds semiannually. The bonds were sold to yield 10%. sto private investors. The bonds have a 7% oopon rate ard interest is pad priv What periodic interest payment does Hudson make to its investors? A) $18,000 B) $20,000 C) 9,000 D) $10,500 E) None of the above 11. InterTech Corporation needed financing to builda ew manufacuring plat on issued $4,350 000 of 8-year bonds with a 6% coupon rate (payments due on December 31" and June PRESENT VALUE OF THE BOND is 384312s. effective interest rate was 8%, What amount in interest expense did InterTech record for the December 31,2017 payment? A) $153,725 B) $130,500 C) $156,625 D) $174,000 E) None of the above 12. Butler, Inc. paid $75,000 to retire a note with a face value of $83,000. The note was issued with an 8% copo rate paid semiannually. The note was three years from maturity and had a net book value of 96.200 What is the net gain or loss on the redemption of the note? A) $6,800 loss B) $8,000 gain C) $8,000 loss D) $6,800 gain E) None of the above

Explanation / Answer

10) periodic interest payment 300,000*7%*1/2 10500 option d is the correct answer 11) interest expense 3,843,125*8%*1/2 153725 option a is the correct answer 12) Bonds payable 83,000 loss on redemption 6,800 discount on bonds 14800 cash 75,000 option a is the correct answer

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

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