1.

On January 1, Blick Corp. issues $150,000 of 20-year, 9% bonds at 94. Assume interest is paid annually each January 1. What is the total cost of borrowing associated with this bond?

Group of answer choices

$250,000

$13,500

$261,000

$270,000

$279,000

2.

A company has bonds with a principal value of $1,000,000 outstanding. The unamortized discount on the bonds is $14,400. If the bonds are retired at 101, what would be the amount the company would pay its bondholders?

Group of answer choices

$1,000,000

$9,996,000

$9,986,000

$1,010,000

$1,004,400