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A 5 Percent Debenture (Face Value = $1,000)pays Interest on June

Question 14

Multiple Choice

A 5 percent debenture (face value = $1,000) pays interest on June 30 and December 31. It is callable at a price of 105 percent together with accrued interest. Suppose the company decides to call the bonds on September 30. What amount must it pay for each bond?


A) $1,000.00
B) $1,037.50
C) $1,062.50
D) $1,050.00

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