Multiple Choice
A corporation issues for cash $9,000,000 of 8%,30-year bonds,interest payable semiannually.The amount received for the bonds will be
A) present value of 60 semiannual interest payments of $300,000,plus present value of $9,000,000 to be repaid in 30 years
B) present value of 30 annual interest payments of $600,000
C) present value of 30 annual interest payments of $600,000,plus present value of $9,000,000 to be repaid in 30years
D) present value of $9,000,000 to be repaid in 30 years,less present value of 60 semiannual interest payments of $300,000
Correct Answer:
Verified
Correct Answer:
Verified
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