14 Frmthe standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing isthat bond interest is deductible for tax purposes. interest must be paid on a periodic basis regardless of earnings c income to stockholders may increase as a result of trading on the equity. d. the bondholders do not have voting rights The interest charged on a $200,000 note payable, at the rate of 8%, on a 90-day note would be a. $16,000. 15. b. $8,888 $4,000 d. $1,333 John Jackson purchases a house with a 30 year fixed mortgage with 360 equal monthly payments of $1,800. Which of the following statements best describes the behavior over time of the components of equal mortgage payments of $1,800? a. The proportion of interest expense to payment of principal remains the same. b. Interest expense increases and payment of principal decreases. c. Payment of principal increases and interest expense decreases d. Both payment of principal and interest expense decrease. 16