Question
Please show a complete step-by-step solution thank you! 1.) InterTech Corporation needed financing to build a new manufacturing plant. On June 30 of this year,
Please show a complete step-by-step solution thank you!
1.) InterTech Corporation needed financing to build a new manufacturing plant. On June 30 of this year, InterTech issued $3,480,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did InterTech record this year for the December 31 payment?
A.) 92,235
B.) 156.685
C.) 122.980
2.) Which of the following corporate debt ratings are ordered in terms of decreasing market interest rates?
A.) A, AAA, BB, C
B.) C, BB, A, AAA
C.) None of the above
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