Fox Chapel Company wishes to issue $400,000 of 5-year, 6% bonds, with interest paid annually at the end of the year. The market rate of interest is currently 5%. What information is needed in order to determine the selling price?

a.The face amount of the bonds, the purpose of the issue, the bond rating, and the bond life.

b.The life of the bonds, the market rate of interest, the bond rating, and the face amount of the bonds.

c.The face amount of the bonds, the stated rate of interest, the market rate of interest, and the bond life.

d.The face amount of the bonds, the market rate of interest, the purpose of the issue, and the bond life.

Bennington Corp. issued a $40,000, 10-year bond at the face rate of 8%, paid semiannually. How much cash will the bond investors receive at the end of the first interest period?

a.$4,000

b.$3,200

c.$800

d.$1,600

Bonds in the amount of $100,000 and a life of 10 years were issued by the Focus Company. If the face rate is 6% and interest is paid semiannually, what would be the total amount of interest paid over the life of the bonds?

a.$30,000

b.$6,000

c.$60,000

d.$120,000