Albatross company issues 6%, 7-year bonds with a par value of $350,000 on January 1 at...
Albatross company issues 6%, 7-year bonds with a par value of $350,000 on January 1 at a price of $327,000, when the market rate of interest was 7%. The bonds pay interest semiannually. The amount of cash paid each semiannual payment is:
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$0. |
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$24,500. |
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$21,000. |
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$12,250. |
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$10,500. |
Homework Answers
Cash paid for each semi annual payment = Par value*Interest rate*Time
= 350000*6%*6/12
Cash paid for each semi annual payment =10500
So answer is e) $10500
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