q34

John Deere is an American manufacturer of agricultural, construction, and forestry machinery, John Deere issued $5 million of 10 % bonds At the time that John Deere issued the bonds, the market rate of interest was 11%. Based on this information which of the below statements is correct? Multiple Choice The carrying value of the bond will decrease as the bond matures. The bonds were issued at a premium. Annual interest expense will exceed the company's actual cash payments for interest. Annual interest expense will be $500,000