Use the following information to answer the next 6 questions:
X2 issued callable bonds on January 1,2015.The bonds pay interest annually on December 31 each year.X2's accountant has projected the following amortization schedule from issuance until maturity:

-What is the annual market interest rate on the bonds?
A)3%.
B)3.5%.
C)6%.
D)7%.

Question

Use the following information to answer the next 6 questions:
X2 issued callable bonds on January 1,2015.The bonds pay interest annually on December 31 each year.X2's accountant has projected the following amortization schedule from issuance until maturity:
 
-What is the annual market interest rate on the bonds?
A)3%. 
B)3.5%. 
C)6%. 
D)7%.

Quizplus · Accepted Answer

The annual market interest rate on the bonds is 6%, as indicated by choice C.

Use the Following Information to Answer the Next 6 Questions