Multiple Choice
InterTech Corporation needed financing to build a new manufacturing plant. On June 30th, 2017, InterTech issued $4,350,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th) . The effective interest rate was 8%.
What amount in interest expense did InterTech record for the December 31, 2017 payment?
A) $153,725
B) $130,500
C) $156,625
D) $174,000
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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