Osby Company issued bonds with a face value of $100,000 on January 1, 2013 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 wo...

The total amount of interest paid each year will be the ...

Osby Company issued bonds with a face value of $100,000 on January 1, 2013. The bonds had

Question:

Osby Company issued bonds with a of $100,000 on January 1, 2013. The bonds had a 7 percent stated rate of interest and a six-year term. The bonds were issued at 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.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...