The ABC Corporation Issues a $1,000 Bond,with an Interest Rate

Multiple Choice

The ABC Corporation issues a $1,000 bond,with an interest rate of 10%,and a maturity date of 2015.This creates a liability for the ABC Corporation to pay the bondholder:

A) $100 interest per year and $1,000 in the year 2015.
B) 10% of the selling price of the bond.
C) an interest payment equal to the dividend payment distributed to the common stockholders.
D) $1,100 annually until the year 2015.