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A Company Issues Bonds at Par on April 1

Question 167

Multiple Choice

A company issues bonds at par on April 1.These 9% bonds have a par value of $100,000 and pay interest annually.April 1 is four months after the most recent interest payment date.How much total cash interest is received on April 1 by the bond issuer?


A) $750
B) $5,250
C) $1,500
D) $3,000
E) $6,000

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