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Atom Endeavour Co. issued $36 million face amount of 9.6% bonds when market interest rates were 10.70% for bonds of similar risk and other characteristics.
Atom Endeavour Co. issued $36 million face amount of 9.6% bonds when market interest rates were 10.70% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Annual interest payment b. Were the bonds issued at a premium or discount? O Premium O Discount c. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? O Interest expense will be less than the interest paid. O Interest expense will be more than the interest paid. Interest expense will be equal to the interest paid
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