Q14. Preferred stockholders?

Q15. On January 1,2015, XYZ Inc. issued $15,000 in bonds for $14,200. They were 8 year bonds with a stated rate of 9% and pay semiannual interest. XYZ uses straight line amortization method.

Q.16?

Q17.?

13) If bonds with a face value of $200.000 are sold at 98.50, the amount of cash proceeds is A) $19,700,000 B) $98,500 C) $197,000 D) $197,500 14) Preferred stockholders: A) Are guaranteed that they will not take a loss on their investment B) Have higher voting rights than common stockholders C) Are sold for a price lower than that of common stock D) Have the first claim on dividend funds 15) On January 1, 2015, XYZ Inc. issued $15,000 in bonds for $14,200, They were 8-year bonds with a stated rate of 9%, and pay semiannual interest. XYZ uses straight-line amortization method. Date Discount Amortized Book Value Unamortized Interest Expense Cash Paid discount 800 June1 June 30 14,200 After the first interest payment on June 30, 2015. what was the amount of interest expense? A) $625 B) $652 C) $725 D) $752 16) On Jan. 1, 2016, ABC Inc. issued $23,000 in bonds for $35,800. They were 8-year bonds with a stated rate of 9%, and pay semiannual interest. ABC uses straight-line amortization method. Premium Book Value Date Interest Expense Unamortized Premium 12,800 Cash Paid Amortized 35,800 Jan1 June 30 After the first interest payment on June 30, 2016, what was the amount of interest expense? A) $253 B) $352 c) $325 D) $235 17) The face value of a bond is $71,000, its stated rate is 7%, and the term of the bond is five years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. Determine the present value of the bonds at issuance. 000 A) $69, 123 B) $72,123 C) $68,123 D) $71,000 18) If bonds with a face value of $204,000 are issued at par, the amount of cash proceeds is A) $203,890 B) $204,000 C) $224,400 D) $244,800