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  3. 11. aam office equip has issued $100,000,000 of bo

11. AAM Office Equip has issued $100,000,000 of bonds. They mature in 15 years and...

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11. AAM Office Equip has issued $100,000,000 of bonds. They mature in 15 years and have a 7% coupon rate. When issued, the market rate for similar bonds was 8.75%. Assume this caused the bonds to be sold for $91,000,000. AAM amortizes and premiums and discounts on a straight line method. The bond pays interest annually with principle due at maturity. Annual interest payments will be, assuming all payments on time the bond outstanding until maturity, will be O A $7,000,000 B $7,600,000 o C $ 6,400,000 o D $9,000,000 O E $8,750,000

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