Multiple Choice
Deany Company issued $100,000 bonds.The stated rate of interest was 8% and the market rate 9%.Which of the following statements is true?
A) The bonds were issued at a premium.
B) Annual interest expense will exceed the company's actual cash payments for interest.
C) Annual interest expense will be $8,000.
D) Deany Company cannot issue bonds if the market rate is higher than the stated rate.
Correct Answer:
Verified
Correct Answer:
Verified
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