Question

X, AVAN Convert to Shirt Picture Tot Box Arrange Quick Styles Sensitivity Design Ideas Mini-Quiz Barnes Company issues $750,000, 9%, 20-year bonds. The current market rate is 8.5%. The total amount of interest owed to the bondholders for the semi-annual interest payment is: A)$67,500. B)$63,750. C)$37,500. D)$33,750. E)$31,875. © 2019 McGraw-Hill Education 14-22

Answer 1

Answer: D. $ 33,750

Amount owed to bondholders for semiannual interest payment = $ 750,000 x 9% x 1/2 = $ 33,750