Bonds payable—various issues on july 1, 2013, $6 million face amount of 7%, 10-year bonds were issued. the bonds pay interest on an annual basis on june 30 each year. the market interest rates were slightly higher than 7% when the bonds were sold.
required:
a. how much interest will be paid annually on these bonds?
b. were the bonds issued at a premium or discount? explain.
c. will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? explain your answer.

In march 2012, the state of california started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-mi) be clearly labeled with a cancer warning. because of this, both pepsi and coke changed their formula to eliminate 4-mi as an ingredient. if pepsi and coke did not change their formula, holding all else constant, what would have happened to the demand for these goods, assuming pepsi and coke were in a competitive market? a. the demand curve for both pepsi and coke would have shifted to the right, causing the price of both products to decrease and the profits for the companies to fall. b. the demand curve for pepsi and coke would have remained unchanged, but the price of both products would have decreased and the profits for the companies would have fallen. c. the demand curve for pepsi and coke would have decreased, but the prices and profits would not have changed. d. the demand curve for only one of them would change because pepsi and coke are substitutes. e. the demand curve for pepsi and coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.