Q4. A long term bond with a face value of $10,000 has a bond interest rate of 6% per year pay:quarterly. What are the amount of the interest payments?(a) $160 (b) $150 (c) $170 (d) $155 (e) your answer (... ......)

We can determine the amount of interest payments using the formula below:Payment per year =…

Answered: Q4. A long term bond with a face value…

Q4. A long term bond with a face value of quarterly. What are the amount of the interest payments? (a) $160 (b) $150 (c) $170 (d) $155 (e) your answer (... ......)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

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Q4. A long term bond with a face value of $10,000 has a bond interest rate of 6% per year pay:
quarterly. What are the amount of the interest payments?
(a) $160 (b) $150 (c) $170 (d) $155 (e) your answer (... ......)

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