On January 1, 2017, The Ledge Inc. issued $500 million of zero coupon bonds at a market yield of 5%. The bonds mature in 10 years.

What was the issue price of these bonds on 1/1/17? In other words, how much money was raised?

Group of answer choices467,289,720

306,956,627

228,757,181

500,000,000

535,000,000

How much interest will The Ledge pay in 2017?

Group of answer choices16,013,003

0

15,347,831

25,000,000

How much interest expense will The Ledge record on its income statement in 2017?

Group of answer choices16,013,003

25,000,000

15,347,831

0

How much interest expense will The Ledge record on its income statement in 2018?

Group of answer choices17,133,913

15,347,831

16,115,223

0

25,000,000