Multiple Choice
A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the straight-line method, the amount of premium amortization per semi-annual interest period is:
A) $3,289.50.
B) $3,500.00.
C) $210.50.
D) $181.59.
E) $421.00.
Correct Answer:
Verified
Correct Answer:
Verified
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