Bertha's Boutique Has 3,000 Bonds Outstanding with a Face Value

Multiple Choice

Bertha's Boutique has 3,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9%.The interest is paid semi-annually.What is the amount of the annual interest tax shield if the tax rate is 34%?

A) $98,500
B) $90,100
C) $90,750
D) $91,800
E) $92,250