A company issues 9%, 20 year bonds w/ a par value of $750,000. The current market rate is 9%. The amount of interest owed to the bondholders for each semiannual interest payment is:
a) $0
b) $33,750
c) $67,500
d) $750,000
e) $1,550,000
show work... its appreciated.
2007-09-10 14:48:10 · 5 answers · asked by jasmine 2 in Business & Finance ➔ Other - Business & Finance
The ANNUAL bond interest is 9% of $750,000, i.e. $67,500. But the question asked for SEMIANNUAL interest, so divide that by 2 and you get the answer $33,750.
2007-09-10 18:50:14 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
The amount of interest owed to the bondholders for each semiannual interest payment is $33,750.
2007-09-11 09:49:54 · answer #2 · answered by Raghavendra S 1 · 0⤊ 0⤋
here first of all we will caculate the interest payment that is
750000*.09=675000.
now for semi annual interest we will devide it by 2
67500/2=33750
so b is the answer
2007-09-11 08:33:48 · answer #3 · answered by ruchi s 2 · 0⤊ 0⤋
B
2007-09-10 21:55:22 · answer #4 · answered by jeff410 7 · 0⤊ 0⤋
B please
2007-09-10 23:10:38 · answer #5 · answered by delta 7 · 0⤊ 0⤋