Bright Technologies issued a bond with a par value of $1,200 and a call premium of 4%. If the bond is called before its maturity date, how much would the company have to pay the bondholders? a. $1,200 b. $1,248 c. $0 d. None of the above

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 18MC: OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000....
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How much would the company have to pay the bondholders of this financial accounting question?

Bright Technologies issued a bond with a par value of
$1,200 and a call premium of 4%. If the bond is called
before its maturity date, how much would the company
have to pay the bondholders?
a. $1,200
b. $1,248
c. $0
d. None of the above
Transcribed Image Text:Bright Technologies issued a bond with a par value of $1,200 and a call premium of 4%. If the bond is called before its maturity date, how much would the company have to pay the bondholders? a. $1,200 b. $1,248 c. $0 d. None of the above
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