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Question Completion Status: A company issued 10-year, 8% bonds with a par value of $400,000. Interest is paid semiannually. The market rate on the issue
Question Completion Status: A company issued 10-year, 8% bonds with a par value of $400,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. The company received 5413,896 in cash proceeds. Which of the following statements is true? O a. The company must pay $400,000 at maturity plus 20 interest payments of $16,000 each. b. The company must pay $400,000 at maturity and no interest payments. Oc The company must pay $413,896 at maturity plus 20 interest payments of S16,000 each. Od. The company must pay $400,000 at maturity plus 20 interest payments of $15,000 each. 1 paints QUESTION 4 On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $487,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount . The amount of discount amortized each period is $812.50. True False 1 points points QUESTIONS Return on equity increases or decreases through bond financing True False Click Save and Submit to sow and submit. Click Satie All Answers to ate all answers
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