A 5% Debenture (Face Value = $1000)pays Interest on June

Multiple Choice

A 5% debenture (face value = $1000) pays interest on June 30 and December 31.It is callable at a price of 105% together with accrued interest.Suppose the company decides to call the bonds on September 30.What amount must it pay for each bond?

A) $1000.00
B) $1037.50
C) $1062.50
D) $1050.00