Which of the following statements is true when 10-year, 6% bonds with a par value of $20,000,000 are issued, and the market interest rate is 8%? The bonds are issued on April 1, 2013 and interest is paid annually on March 30 a. The bonds will be issued at a discount. . Interest paid at March 30, 2014 will equal $1,600,000. c. The issuer will receive $21.200.000 cash on the date the bond is issued d. Bonds payable on the company's financial statements will change with changes in the market price of the bonds.

Which of the following statements is true when 10-year, 6% bonds with a par value of $20,000,000 are issued, and the market interest rate is 8%? The bonds are issued on April 1, 2013 and interest is paid annually on March 30 a. The bonds will be issued at a discount. . Interest paid at March 30, 2014 will equal $1,600,000. c. The issuer will receive $21.200.000 cash on the date the bond is issued d. Bonds payable on the company's financial statements will change with changes in the market price of the bonds.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...

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