This creates a liability for the ABC Corporation to pay the bondholder $100 in annual interest and $1000 in 2015.
<h3>What is the interest rate?</h3>
The cost of borrowing due each period expressed as a percentage of the money loaned, banked, or financed is known as an interest rate.
The interest can be paid annually, half-yearly or quarterly.
As the rate at which the interest was given was 10% and the dividend should be paid to the company on an equal basis, so the amount will be around $100 every year also which means that there will be 1000 to be paid at the end of 2015 deducting $100 from $1100.
Learn more about the interest rates, here:
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The question is incomplete, the correct question is :
The ABC Corporation issues a $1000 bond, with an interest rate of 10%, and a maturity date of 2015. This creates a liability for the ABC Corporation to pay the bondholder:
1. $100 interest per year in $1000 dollars in the year 2015
2. 10% of the selling price of the bond
3. an interest payment equal to the dividend payment distributed to the common stockholders
4. $1100 annually until the end of the 2015th
$100 interest per year and $1000 in the year 2015
