Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adonis received $206,948 in cash proceeds. Which of the following statements is true?
A. Adonis must pay $200,000 at maturity and no interest payments.
B. Adonis must pay $206,948 at maturity and no interest payments.
C. Adonis must pay $200,000 at maturity plus 20 interest payments of $8,000 each.
D. Adonis must pay $206,948 at maturity plus 20 interest payments of $8,000 each.
E. Adonis must pay $200,000 at maturity plus 20 interest payments of $7,500 each
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The market price of a 10-year, $1,000 bond is $1,158.91. Interest on this bond is paid semiannually and the YTM is 14%. What is the bond's annual coupon rate? (Round your answer to the nearest percent.)
Answers (1)
Tiny Town Kennel earns service revenue by caring for the pets of customers. T Town Kennel is organized as a sole proprietorship and owned by Earle Martin the past month, Tiny Town Kennel has the following transactions: a.
Answers (1)
What would be the net annual cost of the following checking accounts? (a) Monthly fee, $3.25; processing fee, $0.35 cents per check; checks written, an average of 20 a month. (Do not round intermediate calculations.
Answers (1)
Jim recently graduated from college. His income increased dramatically; from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a car. This implies that a. The car is an inferior goods for Jim b.
Answers (1)
Which of the following refers to the acquisition of goods in one country and the selling of them to buyers in another country? a. Cartel b. Joint venture c. Trading company d. Outsourcing
Answers (1)
New Questions in Business
Consider a $1,000 par value bond with a 9% annual coupon. The bond pays interest annually. There are 20 years remaining until maturity. You have expectations that in 5 years the YTM on a 15-year bond with similar risk will be 7.5%.
Answers (1)
Mallory hires Raghav to work for one year as an assistant manager at $5,500 per month, reserving the right to cancel the contract at any time. After two months, Mallory fires Raghav because the company's order volume drops.
Answers (1)
Which of the following terms best describes the cumulative value of net income or loss not taken out of the business? (A) Short-term capital. (B) Contributed capital. (C) Working capital. (D) earned capital.
Answers (1)
A nation seeking to increase its overall productivity might be best served by investing money into which area?
Answers (1)
What are some examples of human capital (skills or knowledge) that our economic system (capitalism) overvalues? Give at least two examples of professions or skills that you believe are paid too much for what they do.
Answers (1)