q9

C) The amount of annual interest paid to bondholders remains the same over the life of the bonds. D) The amount of annual interest paid to bondholders increases over the 15-year life of the bonds. 9. If $2.000.000 principal amount of 10% bonds are issued at $97, cash received from the issue of bonds amounts to A) $200.000. B) $1.000.000. C) S1.100.000. D) $1.940.000. 10. Franklin Corporation issues $50.000, 10%, 5-year bonds on January 1. 2018, for $52.100. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond discount or premium, the amount of bond interest expense to be recognized on July 1, 2018 is