Question
Funta Inc issued $200,000, 6%, 10-year bonds, with interest payable semiannually. The market rate on the issue date was 5.5%. Funta received $207,614 in proceeds.
Funta Inc issued $200,000, 6%, 10-year bonds, with interest payable semiannually. The market rate on the issue date was 5.5%. Funta received $207,614 in proceeds. Which statement best describes Funta' responsibility to the bondholders? Select one: a. Funta Inc must pay $206,948 at maturity. b. Funta Inc must pay $200,000 at maturity. c. Funta Inc must pay $200,000 at maturity plus 20 interest payments of $6,000 each. d. Funta Inc must pay $207,714 at maturity plus 20 interest payments of $6,000 each. e. Funta Inc must pay $200,000 at maturity plus 10 interest payments of $12,000 each.
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