Business, 25.02.2020 17:01 johnny2585
Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adidas received $206,948 in cash proceeds. Which of the following statements is true?
a. Adidas must pay $200,000 at maturity plus 20 interest payments of $8,000 each.
b. Adidas must pay $206,948 at maturity plus 20 interest payments of $8,000 each.
c. Adidas must pay $200,000 at maturity plus 20 interest payments of $7,500 each.
d. Adidas must pay $200,000 at maturity and no interest payments.
e. Adidas must pay $206,948 at maturity and no interest payments.
Answers: 2
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Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The mar...
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