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Coulter, Inc. plans to issue 8 -year, 8%,$200,000 bonds paying interest on an annual basis, at a $4,000 premium. Which one of the following statements
Coulter, Inc. plans to issue 8 -year, 8%,$200,000 bonds paying interest on an annual basis, at a $4,000 premium. Which one of the following statements is true? Select one: A. Coulter will receive $196,000 as the issue price. B. Coulter's annual interest expense on the bonds will be less than the amount of interest payments to bondholders each year. C. Coulter's annual interest expense on the bonds will be greater than the amount of interest payments to bondholders each year. D. The cash paid to bondholders will be $4,000 each interest period
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