MC Qu. 123 A company issued...

A company issued 7.0%, 5-year bonds with a par value of $160,000. The market rate when the bonds were issued was 8.0%. The company received $153,511.28 cash for the bonds. Using the effective interest method, the amount of interest expense for the second semiannual interest period is:

Multiple Choice:

$5,600.00.

$6,162.07.

$6,140.45.

$11,200.00.

$12,302.52.

MC Qu. 126 Adonis Corporation issued...

Adonis Corporation issued 10-year, 11% bonds with a par value of $210,000. Interest is paid semiannually. The market rate on the issue date was 10%. Adonis received $223,087 in cash proceeds. Which of the following statements is true?

Multiple Choice:

Adonis must pay $210,000 at maturity and no interest payments.

Adonis must pay $210,000 at maturity plus 20 interest payments of $11,550 each.

Adonis must pay $223,087 at maturity plus 20 interest payments of $11,550 each.

Adonis must pay $223,087 at maturity and no interest payments.

Adonis must pay $210,000 at maturity plus 20 interest payments of $10,500 each.