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  3. on january 1, 2020, monmouth industries issued $70

On January 1, 2020, Monmouth Industries issued $700,000 of 12% bonds. Interest of $60,000 is...

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On January 1, 2020, Monmouth Industries issued $700,000 of 12% bonds. Interest of $60,000 is payable semiannually on June 30 and December 31. The bonds mature in six years, on December 31, 2025. Apple Intergroup, Inc. purchased the entire bond issue on a date when the market interest rate for bonds of similar risk and maturity was 16%. How much discount is amortized on 6/30/2020? [PV factor for ordinary annuity at n=12, i=8% is 7.536; PV value factor of $1 at n=12, i=8% is 0.397] A) $6,662.96 B) $5,552.96 C) $4,442.96 D) $5,550.00 A. A B.B OC.C O D.D

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