The Amazing Widget Company Issues $500 000 of 6%, 10-

Multiple Choice

The Amazing Widget Company issues $500 000 of 6%, 10- year debentures at 103 on 31 March 2013. The debenture pays interest on 31 March and 30 September. The market rate of interest on the issue date was 4%. On 30 September 2013, how much cash did the company pay out to debenture holders?

A) $14 250
B) $7 500
C) $15 000
D) $30 000