Pls help I’ll brainlest ASAP
1 answer:
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Answer:
The cash paid to the bondholder on July 1 is Z = $7000
Step-by-step explanation:
From the question we are told that
The percentage bond issued by the company is %
The par value of the bond is $200,000
The market rate is %
So we are told that the bonds pay interest semiannually on January 1 and July
So the cash paid to the bondholder on July 1 is mathematically evaluated as
Z =
substituting value
Z =
Z = $7000