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On January 1, 2016, Marks Inc. issued $5,000,000, 6%, 10 year bonds at 97. The bonds pay interest semi-annually on June 30 and December 31.
On January 1, 2016, Marks Inc. issued $5,000,000, 6%, 10 year bonds at 97. The bonds pay interest semi-annually on June 30 and December 31. Which of the following statements is false?
A. On January 1, 2016, Marks, Inc. received cash of $4,850,000.
B. The semi-annual cash payments to bondholders will be $150,000.
C. The Marks, Inc. bonds were issued at a discount.
D. When the bonds mature (at the end of the 10 years), Marks, Inc. will have to pay back cash totaling $4,850,000.
A. On January 1, 2016, Marks, Inc. received cash of $4,850,000.
B. The semi-annual cash payments to bondholders will be $150,000.
C. The Marks, Inc. bonds were issued at a discount.
D. When the bonds mature (at the end of the 10 years), Marks, Inc. will have to pay back cash totaling $4,850,000.
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
