On July 1, 2018, Mason & Beech Services issued $ 44 comma 000 of 11% bonds that mature in five years. They were issued at

Question

2 years ago

5

On July 1, 2018, Mason & Beech Services issued $ 44 comma 000 of 11% bonds that mature in five years. They were issued at

par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders?

Business

1 answer:

My name is Ann [436] · Answer 1 · 2022-06-26T21:58:57+03:00

Answer:

The total amount paid to bondholders is $2,420.

Explanation:

Bonds are long-term liability or debt, usually issued at face value, discount or premium.

The total amount paid to bondholders on December 31, 2018 will be the semiannual interest payments, calculated as follows: Face value of the bond x Period interest rate (semi-annual).

Total payment: $44,000 x 11% / 2 = $2,420

On July​ 1, 2018, Mason​ & Beech Services issued $ 44 comma 000 of 11​% bonds that mature in five years. They were issued at

On July 1, 2018, Mason & Beech Services issued $ 44 comma 000 of 11% bonds that mature in five years. They were issued at