Flounder Inc.
Use the information provided for Flounder Inc. to answer the question(s) using the effective interest method.
On January 1, 2012, Flounder Inc. issued $800,000, 10-year, 9% bonds for $662,356. The bonds pay interest on June 30 and December 31. The market rate is 12%.
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Refer to the information provided for Flounder Inc. The interest payment on June 30, 2012, is:
A) $30,000
B) $32,237
C) $31,740
D) $36,000

Question

Flounder Inc. 
Use the information provided for Flounder Inc. to answer the question(s) using the effective interest method.
On January 1, 2012, Flounder Inc. issued $800,000, 10-year, 9% bonds for $662,356. The bonds pay interest on June 30 and December 31. The market rate is 12%.
-
Refer to the information provided for Flounder Inc. The interest payment on June 30, 2012, is:
A) $30,000
B) $32,237
C) $31,740
D) $36,000

Quizplus · Accepted Answer

The Answer of Flounder Inc. 
Use the information provided for Flounder Inc. to answer the question(s) using the effective interest method.
On January 1, 2012, Flounder Inc. issued $800,000, 10-year, 9% bonds for $662,356. The bonds pay interest on June 30 and December 31. The market rate is 12%.
-
Refer to the information provided for Flounder Inc. The interest payment on June 30, 2012, is:
A) $30,000
B) $32,237
C) $31,740
D) $36,000

Flounder Inc. Use the Information Provided for Flounder Inc. to Answer the to Answer