Blanding Company issues $1,020,000 of 8%,10-year debentures at 94 on 28 February 2017.The debentures pay interest on 28 February and 31 August.On 31 August 2017,how much cash did Blanding pay out to investors? (Round to the nearest dollar. )
A)$40,800
B)$39,780
C)$41,820
D)$81,600

Question

Quizplus · Accepted Answer

Blanding Company pays interest semi-annually. The annual interest is 8% of $1,020,000, which is $81,600. For six months, the interest is half of that, which is $40,800.

Blanding Company Issues $1,020,000 of 8%,10-Year Debentures at 94 on 28