Question

Milan Company issued bonds with a face value of $200,000 on January 1, 2016. The bonds had a 7 percent stated rate of interest and a six-year term. The bonds were issued at face value. Interest is payable on an annual basis.
Required
Write a memo explaining whether the total cash outflow for interest would be more, less, or the same if the bonds pay semiannual versus annual interest.


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  • CreatedApril 20, 2015
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