Marshall Manufacturing Issues a $1,000 Bond, with an Interest Rate

Multiple Choice

Marshall Manufacturing issues a $1,000 bond, with an interest rate of 10%, and a maturity date of 2025. This creates a liability for Marshall Manufacturing to pay the bondholder

A) $100 interest per year and $1,000 in the year 2025.
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 2025.