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explain each one pls Knot Corp., issued 10 -year, 8%$100,000 bonds paying interest on an annual basis, at a $5,200 premium. Which one of the
explain each one pls
Knot Corp., issued 10 -year, 8%$100,000 bonds paying interest on an annual basis, at a $5,200 premium. Which one of the following statements is true? A. Knot's annual interest expense on the bonds will be greater than the amount of interest payments to the bondholders each year. B. Knot's annual interest expense on the bonds will be less than the amount of interest payments to the bondholders each year. C. Knot will receive $94,800 as the selling price. D. The cash paid to the bondholders will be $520 each interest period. E. The amount of interest expense each year will increase over the life of the bond Step by Step Solution
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