Georga's Restaurants Has 4,500 Bonds Outstanding with a Face Value

Multiple Choice

Georga's Restaurants has 4,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 8.25 percent. The interest is paid semi-annually. What is the amount of the annual interest tax shield if the tax rate is 37 percent?

A) $137,362.50
B) $162,411.90
C) $187,750.00
D) $210,420.00
E) $233,887.50