The Lakeland Company issues $518,000 of its 10%, 10-year bonds at 106 on March 31, 2017. The bond pays interest on March 31 and September 30. On September 30, 2017, how much cash did the company pay to the bondholders?
A) $2,590
B) $51,800
C) $25,900
D) $12,950
C .Interest Paid = $518,000 x 10% x 6/12 = $25,900
Business
You might also like to view...
Goal programming models can be formulated for RFM analysis with three dimensions only
a. True b. False
Business
How does Karmarkar's Algorithm differ from the simplex method?
A) It follows a path of integer solutions. B) It follows a path inside the feasible region. C) It follows a counterclockwise path around the outside edges of the feasible region. D) It follows a clockwise path around the outside edges of the feasible region. E) It incorporates a second set of artificial variables.
Business