Homework Answers
Answer : Option B. $260,000
Given that
Face Value of Bonds = $200,000
Interest Rate = 3%
Interest per annum = $200,000×3%
= $6000
At the time of Maturity Both Principal value of Bonds and the Interest per the respective year should be paid .
Therefore Gordon Ford Corporation has to pay Principal of $200,000 and Interest for the year $ 6000.
Amount to be paid = Principal + Interest amount
. = $200000 + $6000
. = $260,000
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