XYZ Corp issued a 5-year 5% bond i $800 original issue price, and a 7% y
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
Transcribed Image Text:XYZ Corp issued a 5-year 5% bond issued on 10/31/Y1. with a $ 1.000 fase, and an
$800 original issue price, and a 7% yieid. What is their GID interest expense for year
1?
O $1.00
$8 33
$9.33
$50
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