1. Current market rate is 8%, the corporation issues the Bond at 10%. The bonds will...

 

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1. Current market rate is 8%, the corporation issues the Bond at 10%. The bonds will be issued at a Discount Face Value Premium None of the above Question 2 3 pts Dividend declaration date is the date a liability is incurred. True False Question 3 3 pts $70,000 worth of 5 year bonds were issued on January 1st with a contract rate of 5% and market rate of 6%. Interest is paid semiannually. Calculate the amount of interest paid to bondholders on July 1st. O $4,200 $1,750 O $3,500 O $2,100 1. Current market rate is 8%, the corporation issues the Bond at 10%. The bonds will be issued at a Discount Face Value Premium None of the above Question 2 3 pts Dividend declaration date is the date a liability is incurred. True False Question 3 3 pts $70,000 worth of 5 year bonds were issued on January 1st with a contract rate of 5% and market rate of 6%. Interest is paid semiannually. Calculate the amount of interest paid to bondholders on July 1st. O $4,200 $1,750 O $3,500 O $2,100

Answer rating: 100% (QA)

1 Premium 2 True 3 1750 If the Bond interest rate is more than the market i... View the full answer