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Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $225
Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $225 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.)
Multiple Choice
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$9.00 million.
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$6.75 million.
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$18.00 million.
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$13.50 million
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