On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first...
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Accounting
On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest payment of $1,875 is paid on July 1. What is the stated annual interest rate on the bond?
- 5.00%
- 2.50%
- 1.25%
- 10.00%
On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________.
- $200,000
- $558,438
- $2,233,750
- $6,701,250
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