Question: Blarney Corp. issued 1 0 year, 9 % , $ 1 0 0 , 0 0 0 bonds paying interest semiannually, at a $ 6
Blarney Corp. issued year, $ bonds paying interest semiannually, at a $ discount. Which of the following statements is true?
Question options:
a
Blarney will receive $ when the bonds are issued
b
The cash paid to bondholders will be $ each interest period.
c
Blarney's annual interest expense on the bonds will be greater than the amount of interest payments to bondholders each year.
d
Blarneys annual interest expense on the bonds will be less than the amount of interest payments to bondholders each year.
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