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A Company Issues at Par 7% Bonds with a Par

Question 50

Multiple Choice

A company issues at par 7% bonds with a par value of $500,000 on June 1,which is 5 months after the most recent interest date.How much total cash interest is received on May 1 by the bond issuer?


A) $0
B) $2,916.66
C) $100,000.00
D) $14,583.33
E) $35,000.00

Correct Answer:

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